Majorel – Sitel: a mega-deal that falls through

The company listed on Euronext Amsterdam, including the Saham group in its round table, announced that it had interrupted the merger process with Sitel. Behind the scenes of an aborted deal.

The mega-deal between Majorel and Sitel Group finally fell through. Announced on June 20, with a closing scheduled between the end of 2022 and the beginning of 2013, this merger is currently suspended. “The decision follows intensive efforts to complete the transaction but, despite due diligence completed and synergies validated between the two companies, alignment could not be achieved on the final structure of the transaction in the context of the current macroeconomic environment,” said a statement from the two partners.

According to information relayed by Forbes, the divergences appeared following “a financial asymmetry of the capacity of indebtedness between the two companies (…). The chances of success of the merger were alienated since one of the two parties would be very indebted”.

According to the publication, the recent external growth operation carried out by Sitel, financed by debt, has altered the initial financial modelling, given the changes in interest rates. Sitel even insisted on keeping “the original parameters of the deal”, which was rejected by Majorel.

As a reminder, Majorel Group Luxembourg, a global provider of CX client solutions, has Bertelsman Luxembourg, Sahamam Customer Relationship Investment Limited and Saham Outsourcing Lukembourg as its main shareholders (the latter two belong to the Saham group of Moulay Hafid Elalamy). The initial deal provided for the creation, with Sitel, of a new entity that should generate 5.4 billion euros in turnover and an Ebitda of more than one billion euros.

The terms of the transaction also provided for an overall cash distribution of 440 million euros for the benefit of Majorel shareholders, including the management of this company listed on Euronext Amsterdam.

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