Business Process Outsourcing M&A Update
- M&A deal volume declined 12.9% to 88 completed transactions in Q2 2022 compared to a record high of 101 deals in Q1 but increased 37.5% from 64 deals in Q2 of the prior year.
- In 1H 2022, strategic buyers accounted for only 19.6% of deal volume compared to Private Equity investors with 80.4%. We have seen this trend of increasing PE activity over the last 3-4 years.
- Despite significantly fewer transactions, strategic buyers accounted for 69.4% of total capital invested in 1H 2022 compared to Private Equity investors who accounted for 30.6%.
- North America was the most active region in the BPO sector in Q2 with 44 deals, followed by Europe with 37.
- The largest transaction in the quarter was the Global Business Travel division of American Express’ reverse merger with Apollo Strategic Growth Capital for $5.3B dollars.