Select Page
Permira, TCV, H&F-Owned Genesys to Buy Interactive Intelligence $ININ for $1.4B

Permira, TCV, H&F-Owned Genesys to Buy Interactive Intelligence $ININ for $1.4B

Interactive Intelligence was considering strategic alternatives. Genesys, headquartered in Daly City, south of San Francisco, Calif., is a world leading customer experience platform, with over 4,700 customers in 120 countries. On July 21, 2016, Genesys said it raised a $900 million investment from private equity firm Hellman & Friedman at a $3.8 billion valuation. The Permira funds, along with TCV, which acquired Genesys from Alcatel-Lucent (EN: ALU) for $1.5 billion in February 2012, continue to own a majority stake in the company. “Permira has been a tremendous partner over the past four years, and Hellman & Friedman’s investment in Genesys is further validation of both our strategy and execution. This investment will help accelerate our growth,” Paul Segre, chief executive of Genesys, said last month. Commenting on the acquisition of Interactive Intelligence, Segre now said, “This is a milestone transaction that combines industry-leading expertise and capabilities to enable lasting customer relationships, accelerate innovation and drive growth.” “Our combined product portfolio will provide the broadest set of transformative customer experience solutions optimized for customers of all sizes and sophistication levels, available both in the cloud and on-premise,” he added. Interactive Intelligence is a global leader of cloud services for customer engagement, communications and collaboration backed by over 150- pending patent applications, and more than 6,000 global customer deployments, with more than 2,000 employees worldwide. “The combination of Genesys and Interactive Intelligence provides a complete portfolio to address all market segments by combining Interactive Intelligence’s PureCloud, Cloud Communications-as-a-Service (CaaS), and Customer Interaction Center (CIC) with Genesys’ offerings,” said Don Brown, chairman, president and chief executive of Interactive Intelligence, In a sign of ongoing industry consolidation, the news comes only a day after New Yor-based global private equity firm KKR & Co. (NYSE: KKR) said it agreed to acquire fast-growing call-center software company Calabrio, based in Minneapolis, and a week after French call-center outsourcing company Teleperformance SA (EPA: RCF) agreed to acquire LanguageLine Solutions LLC from private equity firm ABRY Partners and minority equity owners, for $1.52 billion. Last month, Citrix Systems Inc. (NASDAQ: CTXS) agreed to merge its GoTo collaborative communications business with LogMeIn Inc. (NASDAQ: LOGM) in a deal valued at $1.8 billion. In May, Santa Clara, Calif.-based rival Avaya, a portfolio company of private equity firms Silver Lake and TPG Capital, engaged Goldman Sachs and Centerview Partners to explore a possible sale of the company. Avaya was originally spun off Lucent Technologies. A few days earlier, Israeli enterprise software solutions provider NICE Systems (NASDAQ: NICE) agreed to acquire Salt Lake City, Utah-based inContact Inc. (NASDAQ: SAAS), a leading provider of cloud contact center software, for $940 million. Other competitors and companies in related fields include Cisco (NASDAQ: CSCO), RingCentral (NYSE: RNG), ShoreTel (NASDAQ: SHOR), and private equity-backed Aspect Software. Both Genesys and Interactive Intelligence have developed best-in-class capabilities according to Gartner and other industry analysts. The combined company is expected to provide broader customer experience solutions for organizations of all sizes around the world. As a larger entity with increased scale, Genesys said it is “committed to accelerate innovation in the customer experience market, with more than $1.3 billion in revenue and annual R&D spend approaching $200 million.” Both cloud and on-premise product portfolios will continue to be supported and offered to the marketplace, with significant R&D investment across the full product portfolio. The deal is expected to close by the end of the year, subject to customary closing conditions, including regulatory approval and approval by Interactive shareholders. The deal has been unanimously approved by the two boards of directors. Brown, who owns approximately 17% of Interactive shares, has agreed to vote his shares in favor of the transaction. Genesys intends to fund the transaction through a combination of existing cash on hand and committed debt financing to be provided by Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and RBC Capital Markets, which are serving as financial advisors to Genesys. Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal advisor to Genesys. Union Square Advisors LLC is serving as exclusive financial advisor to Interactive Intelligence, and Faegre Baker Daniels LLP is serving as legal advisor.]]>

Call-Center Operator @Teleperformance to Buy @LanguageLine for $1.5B From Abry Partners

Call-Center Operator @Teleperformance to Buy @LanguageLine for $1.5B From Abry Partners

judicial sale of rival TransPerfect Global Inc., one of the world’s leading providers of translation, website localization, and litigation support services. New York-based TransPerfect reportedly generated over $500 million in revenues and $80 million in EBITDA in 2015, and is said to have a market value in excess of $1 billion. The court case chronicles the tumultuous relationship of the company’s two co-founders, Liz Elting and Phil Shawe, who started TransPerfect in a college dorm room over twenty years ago, and are now embroiled in a bitter battle involving “irreconcilable deadlocks” and an “irretrievably dysfunctional governance style.” “LanguageLine Solutions delivers mission critical services to a large array of clients in verticals that we already service in customer service and technical support. It is a superb organization that supports 25,000 clients across the US, Canada and the UK in more than 240 languages with a sophisticated growing network of approximately 8,000 interpreters,” said Teleperformance executive chairman Daniel Julien, and CEO Paulo César Vasques in a statement. “This acquisition will reinforce and boost Teleperformance’s global leadership as a provider of high end value-added services, and will positively impact Teleperformance’s profitability profile. We intend, together with LanguageLine Solutions’ seasoned leadership team, to gradually expand these lines of service across Teleperformance’s geographic footprint,” they added. “When completed, the deal will create immediate value for Teleperformance shareholders as it is expected to be accretive to earnings per share by around 10% on a pro forma basis for 2016.” “LanguageLine has been a long-held and important investment for ABRY. Management has grown revenue, diversified the product lines and increased profitability meaningfully over the course of our investment, and we are thrilled that the Company has found a perfect home within Teleperformance,” said Peggy Koenig, managing partner and co-CEO at ABRY Partners, which acquired LanguageLine for $720 million in 2004. Abry Partners, founded in 1989, has over $4.3 billion of assets under management, and focuses on private equity or debt investments in media, communications, business and information services in North America. “We know that Teleperformance, with its global culture and footprint, is the perfect partner to help us write a great new chapter in the history of the language access solutions industry,” said Scott W. Klein, LanguageLine Solutions CEO. LanguageLine is a global leader in innovative language access solutions for more than 34 years. Its latest innovation, Olympus, is an award-winning cloud-based language access platform that is redefining on-demand language delivery. It provides the highest quality phone, InSight video remote, and onsite interpreting, translation and localization, as well as bilingual staff and interpreter testing and training. Trusted by more than 25,000 clients to enable communication in any situation with the growing limited English proficient and the Deaf and Hard-of-Hearing populations, LanguageLine says it delivers “the industry’s fastest and most dependable access to highly trained and professional linguists in more than 240 languages, 24/7/365. LanguageLine Solutions facilitates more than 32 million phone, video, and onsite interactions each year; a new connection every second.” The acquisition will be fully financed through a debt financing provided by Crédit Agricole, HSBC and Société Générale. Paul Hastings LLP and Linklaters LLP acted as legal advisors to Teleperformance. Credit Suisse and Morgan Stanley acted as financial advisors to LanguageLine Solutions, and Kirkland & Ellis LLP acted as legal advisor. The deal is expected to close before year end, subject to regulatory approvals and other customary closing conditions. Teleperformance serves companies around the world with customer care, technical support, customer acquisition and debt collection programs. In 2015, it reported consolidated revenue of €3.4 billion ($3.7 billion). The group operates 147,000 computerized workstations, with close to 190,000 employees across 311 contact centers in 65 countries and serving more than 160 markets. It manages programs in 75 languages and dialects on behalf of major international companies operating in a wide variety of industries. LANGUAGE INDUSTRY IS BIG BUSINESS More than 6,500 languages are spoken around the world. The global market for outsourced language services and technology was over $38 billion in 2015 and the 2016 market was estimated at nearly $41 billion, with more than half of it within Europe, according to independent market research firm Common Sense Advisory (CSA Research). The language industry is big business, with the worldwide language services market growing at an annual rate of 8% for the past several years, and a projected growth rate of 6.5-7.5% annually through 2018, CSA says. In its 2015 annual report CSA listed the Top 100 Language Service Providers or LSPs worldwide, ranking Lionbridge Technologies (US), TransPerfect (US) and HPP ACG (FR) in the top three spots. LanguageLine has not been listed by CSA among the Top 100 in recent years. Photo: “The Tower of Babel” by Pieter Bruegel the Elder (1563).]]>