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BPO Giant Teleperformance Buys Recruitment Processing Outsourcing Company PSG
Paris, France-based outsourced call center services and BPO giant Teleperformance (News - Alert) has acquired PSG Global Solutions from its management and private investors for approximately $300 million. PSG is a U.S.-based company that offers partial cycle recruitment process outsourcing (RPO), providing solutions for important aspects of the recruiting and recruiting support processes. PSG will become a wholly owned subsidiary of Teleperformance, with its founders and senior management team continuing to operate the company.
Fourteen-year-old PSG Global Solutions, which was founded in Marina del Rey, California, is a high growth, profitable company with annual revenue of $75 million and an annual revenue growth of approximately 40 percent. The company has three lines of business:
- Recruiting, which involves providing dedicated specialists for sourcing, screening and vetting candidates to be interviewed by clients’ recruiting teams;
- Recruiting support, or administrative services covering pre-recruiting, recruiting and post-recruiting workstreams; and
- Full cycle RPO, a comprehensive solution from job posting to candidate onboarding, outsourcing the entire function for clients.
The acquisition is expected to allow Teleperformance to strengthen its added-value specialized services activities, its major position in the U.S. healthcare marketplace and its digital recruitment practices. The deal will create immediate value for Teleperformance shareholders as it is expected to be accretive to EBITDA margin and earnings per share in 2022 on a proforma basis. In the announcement of the acquisition, Teleperformance indicated that it intends to scale up PSG’s RPO activity in new client verticals and new geographies.
“PSG delivers critical recruitment services to a large array of blue chip clients, mostly in diverse recession resilient end-markets in the United States,” said Teleperformance CEO Daniel Julien. “It is a solid organization that supports more than 110 clients with a sophisticated growing workforce of approximately 4,000 employees. Being integrated in Teleperformance’s Specialized Services activities led by Scott Klein, this acquisition will reinforce the Group’s global leadership as a provider of digital integrated business services.”
Julien noted that, together with PSG’s experienced and entrepreneurial management team and its premier proprietary technology capabilities, Teleperformance will continue to strengthen its position in the U.S. healthcare end-market as well as its digital recruitment processes, and that this will be a significant competitive advantage in the current challenging hiring context.
Edited by Erik Linask
