Majorel Acquisition: Key Details, Impact, and What Comes Next

Teleperformance's acquisition of Majorel marks a significant milestone in the customer experience and business process outsourcing industry. This strategic move, valued at 3 billion euros, enhances Teleperformance's market position and expands its global reach. By integrating Majorel's expertise and resources, Teleperformance aims to deliver superior services and drive innovation, particularly in digital transformation and AI.

What Is Majorel?

Founded in 2019, Majorel specializes in customer relationship management, offering services such as digital transformation, customer acquisition, retention, sales development, and financial flow security. With a global reach, Majorel serves 300 million consumers in 60 languages across 44 countries, employing 82,000 people worldwide. Its unique selling points include comprehensive solutions that combine talent, data, and technology, as well as industry-specific services tailored for sectors like insurance, banking, and telecommunications.

Who Acquired Majorel?

Teleperformance is a global leader in digital business services, specializing in enhancing customer experiences through a blend of human expertise and AI technology. The company offers a wide range of services, including Digital CX and AI, CX Management, Consulting, Analytics, and Technology, as well as Specialized Services. With a significant global presence, Teleperformance serves 170 countries and employs around 500,000 team members, emphasizing innovation and process excellence to maintain its market leadership.

When Was Majorel Acquired?

Teleperformance announced the acquisition of Majorel on April 26, 2023, and completed the tender offer on November 8, 2023. This acquisition comes amid a wave of industry consolidation, following the $4.8 billion merger between Concentrix and Webhelp in March 2023. The timing also aligns with Teleperformance's strategic shift towards digital transformation and automation, reflecting broader industry trends focused on enhancing customer experience through advanced technologies.

Why Was Majorel Acquired?

• Market Expansion: The acquisition of Majorel significantly broadens Teleperformance's market presence, particularly in Europe, Asia, and Africa. This strategic move enhances Teleperformance's ability to deliver services on a global scale, creating a digital business services organization with over EUR 10 billion in revenue and a strong presence in nearly 95 countries.
• Technology Integration: Teleperformance benefits from Majorel's investments in digital services, including the "Majorel Infinity" platform launched in 2023. This integration will enhance Teleperformance's in-house GPT solutions, driving innovation in AI and advanced outsourcing solutions, which are far ahead of current market offerings.
• Competitive Advantage: The acquisition positions Teleperformance as the largest market player in the industry, with significant advancements in digital services and AI integration. This move consolidates Teleperformance's market share, particularly in Latin America and Europe, and strengthens its ability to deliver superior business results for clients and employees.

Acquisition Terms

• Acquisition Price: The acquisition was valued at 3 billion euros ($3.3 billion).
• Payment Method: The transaction involved 30 euros in cash per Majorel share, with an option for shareholders to receive shares at an exchange ratio of 0.1382. Additionally, Bertelsmann and Saham exchanged their combined 40% stake in Majorel for a 4% shareholding in Teleperformance.
• Key Conditions or Agreements:
  • Bertelsmann and Saham, the majority shareholders in Majorel, irrevocably committed to tender their shares.
  • Teleperformance planned to raise 2.05 billion euros through a capital hike to fund the deal.
  • The transaction was subject to regulatory approval and was completed after receiving all necessary approvals.
  • Bertelsmann and Saham became new shareholders of Teleperformance, each holding around 4%.

Impact on Majorel

The acquisition of Majorel by Teleperformance has led to notable changes in operations and management. Teleperformance now owns 99% of Majorel, with Bertelsmann and Saham exchanging their combined 40% stake for a 4% shareholding in Teleperformance. This shift in ownership is expected to bring about a more integrated management structure, leveraging Teleperformance's extensive global network and technological capabilities. The management team of Majorel, recognized for their role in the company's success, will likely continue to play a significant role under the new ownership, ensuring a smooth transition and continuity in leadership.

In terms of product offerings and services, the acquisition is set to enhance and expand the combined entity's capabilities. Majorel's digital customer engagement platform, "Majorel Infinity," will be integrated into Teleperformance's suite of services, driving innovation in AI and advanced outsourcing solutions. This merger will also broaden Teleperformance's footprint in Latin America, with new call centers in Colombian towns like Tunja and Bucaramanga. Both employees and customers have shown optimism, with the acquisition promising better business results and a more robust service portfolio. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a seamless and efficient transition.