PR - European CRM and ARM Firm Acquires Canadian Call Center Giant

 
Transcom WorldWide S.A., the European CRM and debt collections specialist, today announced that it has acquired 100% of NuComm International, a leading North American provider of contact center solutions.

A maximum cash consideration of $84.9 million (USD) will be paid in three installments. An initial payment of $47.1 million will be paid, with the remainder being subject to a two tier earn-out ending in December 2008. The earn-out is calculated as the balance due based on a complete deal valuation multiple of 9 times the forecasted 2008 EBIT, but is capped at $37.8 million.

NuComm had revenues of $115.1 million for the twelve months ended July 31, 2007. Réal Bergevin, the founder and CEO of NuComm, has signed a contract to remain with the business under the new ownership.

NuComm, headquartered in St. Catharines, Ontario, is a leading North American supplier of contact center services and has been named one of Canada’s 50 Best Managed Companies for six years running by Deloitte & Touche. Established in 1991 as a consulting organization, the company ventured into the call center market in 1995. The company now employs over 3,000 people across 14 call centers, with 10 centers based in Canada, two in the United States and two in the Philippines. In addition to NuComm’s existing 480 seats in the Philippines, the company is currently investing in the opening of a third site, which will add up to 1,500 further seats.

NuComm has also been active in debt collection since 2005 following its acquisition of Canadian collection agency Federal Credit & Consulting.

Commenting on the deal, Keith Russell, President and CEO of Transcom, said, “This is an extremely important move for Transcom. With NuComm, we are firmly established in NorthAmerica, the largest CRM and call management market in the world, with significant development potential both in North America as well as the Far East, where NuComm has a significant offshore operation to provide service for North American customers. The merger with NuComm creates both the opportunity for accelerated growth for both businesses and it enables us to consolidate some of our support activities resulting in cost synergies.”

Réal Bergevin, CEO of NuComm, remarked, “I am very pleased to announce this exciting development for our business. In Transcom, we have found the perfect partner. Our companies share a similar ethos and approach towards providing customers with the highest quality solutions, as well as hiring, motivating and retaining the best people. We also have the same vision for the future – to expand margins by increasing the share of near and offshore services, and by further developing the debt collection business. I look forward to realizing the significant opportunities that lie ahead for the combined group, and am proud of NuComm’s accomplishment in reaching this stage in our corporate development.”

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