Business outsourcing company TeleTech Holdings Inc. (TTEC) announced that it has acquired rogenSi Worldwide PTY, a global leadership and sales execution consulting firm. The acquisition will strengthen TeleTech’s strategic consulting capabilities and enhance its global foothold.
rogenSi will be integrated into TeleTech’s Customer Strategy Services segment, enriching and adding scale to the latter’s learning and change management practices.
Details of the Acquisition
Per a securities filing, TeleTech paid $35.7 million for the rogenSi acquisition. This comprises a payment of $18 million at the time of the deal closure and $17.7 million in three earn-out payments, conditional on the acquired business hitting certain earnings targets. The earn-out payments will be due annually through 2017.
The deal was first announced in August and is expected to be immediately accretive to earnings.
Synergies
The integration of rogenSi with TeleTech’s Customer Strategy Services segment will enhance its consulting capabilities and offer range and breadth to its learning and change management practices.
The acquisition will build on rogenSi's distinctive consulting approach by integrating TeleTech's proficiency in digital and analytical expertise. rogenSi's leadership development and sales effectiveness techniques, combined with TeleTech’s customer experience strategy, multi-channel operations and technology consulting, will add great value to clients globally.
The deal will significantly expand TeleTech's global footprint and client breadth, while enhancing its ability for the successful implementation of its customer engagement strategies.
TeleTech’s Strategy
TeleTech is a leading provider of analytics-driven, technology-enabled customer engagement solutions with a global presence. It follows a solid growth strategy by continually diversifying its product portfolio through acquisitions and thus expanding its geographic footprint. TeleTech consistently invests in technology differentiation, cloud computing, analytics and digital marketing.
TeleTech is focused on creating sustainable economic value by expanding its client base through synergistic acquisitions. In Feb 2014, TeleTech acquired Sofica, Bulgaria's leading independent customer management outsourcing services company. In 2013, it acquired WebMetro, a digital marketing agency, and completed its buy-out of Peppers & Rogers Group, a global customer-strategy consulting firm.
The rogenSi buy looks to be in sync with its global expansion strategy and heralds solid growth prospects for the company, going forward.
TeleTech currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the business services sector include Avis Budget Group, Inc. (CAR), Green Dot Corporation (GDOT) and Gartner Inc. (IT), each carrying a Zacks Rank #1 (Strong Buy).
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