(News Bulletin 247) – Teleperformance shares rose on Thursday morning, driven by rich news on the mergers and acquisitions (M&A) front with the announcement of the merger between its rivals Concentrix and Webhelp.
Webhelp and Concentrix announced last night that they have reached an agreement to merge the two groups with the aim of creating a global player in customer experience (CX).
If the operation suggests the creation of another giant in the sector, displaying more or less the same dimension as Teleperformance, it could prove rather beneficial to the French group, analysts believe.
‘In the short term, the integration of Webhelp (probably sometime in 2024) could distract Concentrix, allowing Teleperformance to continue its organic outperformance,’ say RBC analysts.
The Canadian broker believes that the transaction also validates the ‘Cube TP’, i.e. the ‘three-dimensional’ approach (services, sectors, countries) implemented by Teleperformance in order to respond to the growing complexity of demands of its customers.
‘With an Enterprise Value to EBITDA ratio of 8.7x, we continue to believe that Teleperformance stock is too cheap given its track record of defensive growth, M&A and long-term growth opportunities term’, points out RBC.
The broker also declares to expect a reassuring point of activity on the occasion of the next publication scheduled for April 25.
The title benefited Thursday morning from this intense activity on the M&A front by winning 1.6%, after having gained up to 3.6% at the start of the session.
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