Teleperformance (TEP) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of ZP Better Together targets a leading U.S. provider of language and interpreting solutions for the deaf and hard of hearing, complementing and expanding specialized services.

• ZP's integration with LanguageLine Solutions strengthens its position as a global leader in language solutions and enhances offerings.

• The deal leverages strong cultural and mission alignment, with both organizations focused on accessible, equitable communication.

• The acquisition is a natural extension of years-long relationships and market monitoring.

Financial terms and conditions

• Enterprise value of the transaction is $490 million, fully financed through debt, with the price on a cash and debt-free basis and subject to customary adjustments.

• ZP reported annual revenue exceeding $230 million in 2024, with double-digit growth since 2018.

• The deal is expected to be accretive to EPS from year one, before purchase price allocation.

• Debt leverage is projected to remain under two times EBITDA at the end of 2024 and 2025.

• Credit lines for the acquisition are available at a cost of around 5% or less.

Synergies and expected cost savings

• Significant technology and revenue synergies are anticipated, with cross-selling opportunities and enhanced service portfolios.

• ZP University supports staffing needs, and a B2B focus is expected to drive incremental growth.

• No client overlap, ensuring complementary service expansion.