In the last year we have seen how large funds have realised the opportunity presented by the European outsourcing market and have decided to invest in the sector. In Spain in particular, yesterday we learned about the purchase of Digitex by Carlyle, but already last September the French fund PAI Partners bought Konecta.
Why is private equity interested in outsourcing?
Outsourcing is a very fragmented market, where there are many competitors in the sector and it is difficult to grow organically. The possibility for companies to grow through mergers and acquisitions in the sector (build up), thanks to the injection of liquidity from venture capital, creates value in the companies.
Venture capital then disinvests in such companies, which, thanks to the build-up, have a higher value at the time of sale.
Carlyle's purchase of Digitex
The acquisition of the Spanish Digitex by Carlyle is a clear example of the strategy that venture capitalists are pursuing to consolidate the outsourcing market.
Carlyle, a US fund, announced two months ago that it was acquiring the Italian company Comdata and now with the purchase of Digitex's 90% , it lays the foundations for the constitution of a larger group, integrating Digitex and Comdata.
One of Digitex's strengths is its strong presence in Latin America, Digitex has offices in Colombia, Mexico, Peru, Chile, Guatemala and El Salvador. The incorporation of Carlyle will be a boost for the BPO services provider's international expansion project. Countries such as Brazil, Argentina and the United States are on the radar.
Digitex operates through three divisions: customer service, back office and IT (information technology). It has a workforce of 16,000 employees. Telefónica, BBVA, Endesa and Siemens are some of the Spanish company's clients.
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