TeleTech Holdings Inc. (TTEC), a premier global analytics and technology-enabled customer engagement solutions provider, signed a definitive agreement to acquire Sofica Group, Bulgaria's leading independent customer management outsourcing services company, for an undisclosed amount.
Per the agreement, Sofica’s operations will be integrated into TeleTech's Customer Management Services segment. The acquisition will enable TeleTech to offer superior customer lifecycle management services across multiple channels in over 18 languages in Central and Eastern Europe. Subject to regulatory approvals and fulfillment of customary conditions, the transaction is expected to close within the next week.
Founded in 2004, Sofica has evolved as the most prominent independent business process outsourcing (BPO) provider in Bulgaria, with operations across the nation and Macedonia. Offering a diverse mix of knowledge and competencies in the BPO, ITO (Information technology outsourcing) and HRO (Human Resources Outsourcing) sectors, Sofica is committed to deploying the most advanced information technologies in the development and improvement of the service portfolio.
Sofica’s consumer portfolio consists of eminent clients including Hewlett-Packard Co. (HPQ), American International Group, Inc. (AIG), Oracle Corp. (ORCL), DSK Bank and Mtel. This partnership heralds great opportunities for Sofica’s clients, employees and shareholders as the company incorporates its multi-channel and multilingual capabilities into TeleTech's marquee international client base.
TeleTech is a leading provider of comprehensive customer and enterprise solutions, collaborating with the world's leading companies to architect and execute differentiated service experiences across the customer life cycle. With this acquisition, TeleTech will be distinctively positioned to assimilate its holistic multi-channel operations with Sofica’s regional outsourcing capabilities.
This buyout will enable TeleTech to broaden its geographic footprint, services portfolio, and language capabilities, thus facilitating its international growth strategy. TeleTech has a flourishing global client base, and Sofica's skilled management team, competent workforce and substantial technology infrastructure will enable the former to cater to the needs of its clients, thus generating considerable value.
The collaboration is likely to reinforce TeleTech’s dominant position in the global markets, as Sofica’s regional faculties enable it to expand its operations in the European countries.
TeleTech recently reported its financial results for 2013, reflecting a 5.8% growth in revenues to $1.21 billion compared with last year, and a 29.2% year-over-year increment in income from operations to $101.4 million. The management offered a bullish outlook for 2014, expecting a positive trend in revenues and earnings, supported by investments for inorganic growth.
TeleTech is focused on creating sustainable economic value by expanding client base through synergistic partnerships as is evident from its excellent financial results for 2013. We believe that this acquisition will be conducive to its global expansion strategy and is a harbinger of solid growth prospects for the company, going forward.
TeleTech currently holds a Zacks Rank #3 (Hold).