June 14, 2018 / 5:14 PM / 8 days ago

France's Teleperformance agrees $1 billion deal to buy Intelenet from Blackstone

(Reuters) - Teleperformance (ROCH.PA) has agreed to buy India-based Intelenet from U.S. private equity firm Blackstone (BX.N) in a $1 billion deal aimed at strengthening its specialized services business, the French company said.

FILE PHOTO - The logo of Blackstone Group is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) April 4, 2016. REUTERS/Brendan McDermid/File Photo

Intelenet’s operations, including human resources and administration services primarily to the banking, financial services and insurance sectors, will help Teleperformance toward its 2018-22 targets, CEO Daniel Julien said in a statement.

Teleperformance has targeted revenue of 6 billion euros ($7 billion) by 2022.

The acquisition, combined with the company’s internal growth, is likely to help Teleperformance reach its 2022 targets earlier than planned, Julien said in a conference call.

The deal is expected to lift 2018 earnings per share by 10 percent, Teleperformance said, adding that Intelenet posted core earnings of $83 million on revenue of $449 million for the year to March 31 and expects 10 percent growth in its 2019 financial year.

The transaction is expected to close by the end of September and will be fully financed through debt provided by BNP Paribas, J.P. Morgan and Natixis.

The financing could later be covered by a bond issue, subject to market conditions, the company said.

Reporting by Piotr Lipinski in Gdynia; Editing by David Goodman

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