November 27, 2024 07:32 GMT
TECHNOLOGY: Teleperformance Acquires ZP Better Together
TECHNOLOGY
BBB
The timing of the deal means that guidance for leverage <2x by year-end should still be met while the reiteration of the same leverage guidance for end-2025 is assuring (as are ZP’s growth figures and the deal being EPS accretive from year 1).
- Teleperformance announced late yesterday that they are to acquire ZP Better Together for USD 490mn, fully debt-financed, closing early 2025. The company provides language and tech platforms, specializing in video services for the deaf and hard of hearing community. Will integrate with LanguageLine, Teleperformance’s interpretation/translation service.
- Leverage to stay below 2x EBITDA in 2024 and 2025. Leverage was 2.13x at H1 and 2.18x at FY23 (pro-forma Majorel); this deal looks like ~0.23x turns of leverage (constant EBITDA). Existing guidance is for <2x by end-2024.
- ZP expected to generate USD 230mn revenue in 2024 (Teleperformance FY24 BBG consensus is USD 10.3bn) and is reported to have double-digit annual growth over the past seven years. Transaction accretive to EPS from year 1.
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