TeleTech Holdings Inc.
), 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
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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
American International Group, Inc.
), 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).