Business Process Outsourcing M&A Update

3Q 2020

RESOURCE HIGHLIGHTS

  • M&A deal volume in the BPO sector has returned to a more normalized level in Q3, up 100% from Q2 with a total of 28 completed transactions.
  • Total capital invested for all deals disclosed increased 400% from Q2 2020, but it is still down 88% compared to Q3 2019.
  • PE investors have been more active than strategic buyers in the BPO space in both deal volume and capital invested so far in 2020.
  • The acquisition of PCI Pharma Services by Kohlberg & Company and Mubadala Development Company represented the largest transaction in Q3.
  • Valuation multiples on PE transactions have trended higher in YTD 2020 compared to the prior year while valuations on strategic M&A transactions have declined.
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