Sitel Group, a global provider of customer experience products and solutions, entered into a definitive agreement to acquire Sykes Enterprises, a provider of global customer experience management services, multichannel demand generation and digital transformation. Under the terms of the agreement, a subsidiary of Sitel Group will acquire all outstanding shares of Sykes’ common stock in an all-cash transaction valued at approximately $2.2 billion.
BNP Paribas committed debt financing to Sitel Group to support the transaction. In addition, Lazard Freres acted as financial advisor and Freshfields Bruckhaus Deringer acted as legal advisor to Sitel Group. Goldman Sachs acted as financial advisor and Shumaker, Loop & Kendrick acted as legal advisor to Sykes Enterprises.
Following the proposed transaction, the combined company will employ 155,000 employees across global offices in 39 countries, serving more than 600 clients in more than 50 languages. With the combined company’s increased capacity, it is expected to reach a revenue greater than $4 billion in 2021.
“We are committed to our people and the legacy of Sitel Group in the business landscape. By joining forces with such a healthy, profitable and financially solid U.S. brand that also has a stellar reputation, we will further enhance our global reach,” Laurent Uberti, president, CEO and co-founder of Sitel Group, said.
“Post-pandemic, the forces of digital disruption and dynamism are accelerating,” Olivier Camino, global chief operating officer and co-founder of Sitel Group, said. “A new world is emerging with the rise of the work-at-home model, and the need for valuable emotional connections and conversations between brands and their consumers has never been so important. With our expanded geographic footprint and greater capacity to serve customers, we will be better equipped to help our customers navigate the rapid changes within the industry. This acquisition is a fantastic opportunity for Sitel Group to enhance and accelerate our CX products and solutions within EXP+, especially with the addition of Sykes’ CX solutions in digital, social media and robotic process automation (RPA), through their suite of digital transformation capabilities, such as Clearlink and Symphony.”
“We began this journey more than 25 years ago, and our entrepreneurial mindset guides us today in driving innovation to enhance the CX journey for our customers and preparing for tomorrow so we can build the future with confidence as a leading global player,” Uberti said. “Further, we are passionate about elevating the employee experience, along with our talented people around the world and people-centric values. We are excited about our future and continuing our story with best-in-class CX delivery for our customers and a greater employee experience for our combined 155,000 employees. We have tremendous respect for Chuck Sykes and the business he and his family have built.”
“This combination marks a major milestone in our more than 40-year operating history,” Sykes, who serves as president and CEO of Sykes Enterprises, said. “As we embark on the next phase of our journey, there is an opportunity to take the business to historic heights with a proven partner. I am confident that we have a valuable partner with a solid heritage of deep industry knowledge and experience, credible industry reputation, shared vision and an employee-first culture to further advance our leadership position as a leading global provider in a highly fragmented customer experience marketplace.”
The transaction is not subject to a financing condition and is expected to be completed in the second half of 2021, subject to the approval of Sykes’ shareholders and customary closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other regulatory clearances. Upon the closing of the transaction, Sykes will become a privately-held company and its shares will cease trading on Nasdaq.
