(AOF) – Teleperformance (-3.72% to 84.98 euros) shows one of the biggest declines in the CAC 40. The group announced yesterday evening the signing of a definitive agreement with the Kinderhook Industries fund with a view to the acquisition of ZP Better Together. The acquisition price of this specialist in linguistic solutions and platforms intended for deaf and hard of hearing people is set at $490 million, subject to customary adjustments. This acquisition should, according to UBS, restrict the room for maneuver available to the group to launch a new share buyback program.
“Some investors may think that purchasing their own shares is more profitable than a large acquisition at this stage,” points out the Swiss bank.
UBS admits at the same time that “given the volatility of organic growth and the perceived risks of AI disruption, specialized services appear more resilient and generally better appreciated by investors”.
ZP has experienced double-digit average annual revenue growth over the past seven years and expects to achieve revenue of more than $230 million in 2024.
Annual objectives reaffirmed at the beginning of November
“As we accelerate the integration of AI solutions across all our businesses, we remain equally committed to continuing the high value-added development of our specialized services. These services are designed to meet very specific demands that require critical knowledge and unique expertise They are also experiencing sustained and profitable growth,” specifies Thomas Mackenbrock, Deputy Managing Director of the Teleperformance group, which plans to complete this acquisition in early 2025.
The operation will be entirely financed by debt and the company anticipates a net debt to Ebitda ratio of less than 2 times at the end of 2024 and at the end of 2025.
Remember that the call center manager reaffirmed its annual objectives at the beginning of November. The customer relationship management specialist is targeting organic pro forma revenue growth of between 2% and 4% and an increase in recurring Ebita margin of between 10 and 20 basis points on a pro forma basis. (vs. 14.9% in 2023). It also anticipates strong generation of net free cash flow and a net debt to EBITDA ratio of less than 2.
Since the start of the year, the stock has fallen 35%: investors are concerned about the impact of the development of artificial intelligence on Teleperformance's activity.
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