Teleperformance to Acquire LanguageLine Interpretation Solutions

LanguageLine Solutions is the US market leader in over-the-phone and video interpretation solutions to the healthcare, insurance, financial services, communications industries and government sectors.

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Teleperformance, a Paris-based provider outsourced omnichannel customer experience management to the insurers, has entered into a definitive merger agreement to acquire LanguageLine Solutions LLC (Monterey, Calif.) from ABRY Partners (Boston) and minority equity owners. The deal is valued at US$1,522 million at closing, which is expected to occur before year’s end.

Paulo César Vasques, CEO, Teleperformance.

Paulo César Vasques, CEO, Teleperformance.

LanguageLine Solutions is the US market leader in over-the-phone and video interpretation solutions to a wide range of organizations in the healthcare, insurance, financial services, communications and government sectors. Founded in 1982, LanguageLine Solutions had revenue of US$388 million and adjusted EBITDA of US$147 million in 2015.

Daniel Julien, Executive Chairman of Teleperformance, and Paulo César Vasques, the company’s CEO, provided the following written statement: “LanguageLine Solutions delivers mission critical services to a large array of clients in verticals that we already service in customer service and technical support. It is a superb organization that supports 25,000 clients across the US, Canada and the UK in more than 240 languages with a sophisticated growing network of approximately 8,000 interpreters. This acquisition will reinforce and boost Teleperformance’s global leadership as a provider of high end value-added services, and will positively impact Teleperformance’s profitability profile. We intend, together with LanguageLine Solutions’ seasoned leadership team, to gradually expand these lines of service across Teleperformance’s geographic footprint.”

When completed, the deal will create immediate value for Teleperformance shareholders as it is expected to be accretive to earnings per share by around 10% on a pro forma basis for 2016, according to Julien and Vasques.

“LanguageLine has been a long-held and important investment for ABRY,” notes Peggy Koenig, managing partner and Co-CEO, ABRY Partners. “Management has grown revenue, diversified the product lines and increased profitability meaningfully over the course of our investment, and we are thrilled that the Company has found a perfect home within Teleperformance. We wish the management team and Teleperformance continued success going forward.”

Expanding LanguageLine’s Market Reach

“We know that Teleperformance, with its global culture and footprint, is the perfect partner to help us write a great new chapter in the history of the language access solutions industry,” comments Scott W. Klein, CEO LanguageLine Solutions. “The LanguageLine leadership team is excited to join the Teleperformance group in order to expand the reach of our business and to help us to continue to provide total and complete client satisfaction.”

The acquisition will be fully financed through debt financing provided by Crédit Agricole, HSBC and Société Générale, a joint statement reports. Paul Hastings LLP and Linklaters LLP acted as legal advisors to Teleperformance in conjunction respectively with the acquisition and the financing.

Credit Suisse and Morgan Stanley acted as financial advisors to LanguageLine Solutions on the transaction and Kirkland & Ellis LLP acted as legal advisor.

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at or (503) 936-2803.

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