U.S. Markets open in 8 hrs 22 mins

Genpact (G) to Benefit From Rightpoint Buyout: Here's How

Zacks Equity Research

Genpact G yesterday announced that it has inked a deal to acquire Rightpoint — a Chicago-based digital consultancy. The financial terms of the deal have been kept under wraps.

Founded in 2007, Rightpoint has gained popularity as one of the fastest growing technology consultancies in America. The company has five core solution areas — customer experience and engagement, commerce, digital products, digital workplace, and digital operations. It serves more than 250 Fortune 1000 companies.

The deal closure is subject to fulfillmentof customary closing conditions, which include the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Ross Freedman — co-founder of Rightpoint — will continue working as CEO of this business.

A Strategic Move to Strengthen Experience Expertise

The deal marks the merger of Genpact's deep process, domain, and digital expertise with Rightpoint's experience-generating potential (for both customers and employees). It is aimed to combine experience and process innovations so as to help clients drive end-to-end digital transformation in the expanding experience economy. 

Inclusion of Rightpoint should increase Genpact's capabilities to drive transformative outcomes for clients.

The company has been making continuous investments to boost its experience expertise organically and through the acquisition of an experience consultancy, TandemSeven, in 2017.

Notably, the fast-evolving experience market is expected to generate more than $30 billion for middle and back office functions in 2019. In fact, according to Forbes, 89% of enterprises are currently competing on experience, reflecting a massive increase from the 2010 figure of 36%. Given this encouraging backdrop, the latest deal seems to be a strategic move on Genpact’s part to strengthen its foothold in the experience industry.

'Tiger' Tyagarajan, president and CEO at Genpact, stated, "I am very excited to have Ross and the very talented Rightpoint team join Genpact as we together help transform our clients' businesses in this experience economy."

Zacks Rank & Stocks to Consider

Genpact currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton BAH, S&P Global SPGI and Fiserv FISV. While Booz Allen Hamilton sports a Zacks Rank #1, S&P Global and Fiserv carry a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for Booz Allen Hamilton, S&P Global and Fiserv is 13%, 12% and 10%, respectively.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

Download Free Report Now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
S&P Global Inc. (SPGI) : Free Stock Analysis Report
 
Genpact Limited (G) : Free Stock Analysis Report
 
Fiserv, Inc. (FISV) : Free Stock Analysis Report
 
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research