Business Process Outsourcing M&A Update

4Q 2020

RESOURCE HIGHLIGHTS

  • After a significant decline in Q2 due to covid, M&A deal volume in the BPO sector picked up in Q3 and increased further in Q4 for recovery to pre-covid levels, up 68% from Q3 with a total of 47 completed transactions.
  • Despite the 68% uptick in Q4, overall deal volume in 2020 declined 30% from 2019.
  • PE investors have been more active than strategic buyers in the BPO space in both deal volume and capital invested in 2020.
  • The acquisition of Synteract by Syneos Health (NAS: SYNH) in a $400M deal represented the largest disclosed transaction in Q4.
  • Valuation multiples on PE transactions have trended higher in 2020 compared to the prior year while valuations on strategic M&A transactions have declined.
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