Teleperformance Acquires ZP Better Together
Foreks - Teleperformance announced that it has signed an agreement to acquire ZP Better Together (ZP), a leader in language solutions and technology platforms for the deaf community, from U.S. private equity firm Kinderhook Industries.
Going forward, ZP will operate as part of Teleperformance’s LanguageLine Solutions, providing best-in-class translation and interpretation services worldwide in healthcare, insurance, financial services, telecommunications, and public utilities. This acquisition will further strengthen Teleperformance's position as the most comprehensive provider of barrier-free communication in the digital business services sector.
As part of its development strategy aimed at further enhancing its Specialized Services Division, ZP's services—including telephone, video, and on-site interpretation, as well as document translation and localization—will be delivered under the LanguageLine Solutions umbrella. This will broaden the service portfolio and create potential additional revenue streams by serving a wider customer base with innovative technology solutions. With this move, Teleperformance aims to enhance its projected growth, profitability, and cash generation while maintaining its strong balance sheet and credit rating. ZP, which has achieved double-digit annual growth rates over the past seven years, is expected to generate more than $230 million in revenue by the end of 2024.
Comprehensive solutions that eliminate communication barriers
Based in Austin, Texas, ZP has been developing solutions for communication access and social equity for the deaf community for nearly 25 years. The company provides seamlessly integrated, comprehensive innovative solutions and advanced technology platforms, along with skilled interpretation services, to support this community effectively. This mission aligns perfectly with Teleperformance's values, which focus on breaking down barriers in communication.
Thomas Mackenbrock, Group Vice President of Teleperformance, noted, "The acquisition of ZP offers an extraordinary area for development within our existing LanguageLine Solutions division. This acquisition will enhance and complement our ability to provide more comprehensive solutions to our clients, forming a core component of our strategy to develop specialized services. As we accelerate the integration of AI solutions across all our services, we continue to contribute to the value-enhancing development of our specialized services. These services are designed to meet special requests that require critical information and distinctive expertise while providing long-term value and a meaningful impact in our industry."
Tülay Doğrular, CEO of Teleperformance Turkey, stated, “Customer experience is one of the most important values we focus on to deliver the highest standards at every stage. In this context, we aim to respond to our clients' needs as efficiently as possible by continuously improving the quality, accessibility, and speed of the services we provide. While doing this, we prioritize not only the quality of service but also ensuring that every individual feels valued and understood. Our culture, based on diversity and inclusivity, is the most important guide in this journey. By embracing differences as a wealth, we strive to offer an equal and unique experience to both our employees and clients. The acquisition of ZP Better Together is a significant step in advancing the services we provide through LanguageLine Solutions. This will enable us to offer comprehensive solutions that facilitate the daily lives of deaf individuals, helping them overcome their communication barriers. As Teleperformance, we will continue our investments that add value to individuals and society in the upcoming period.”
The acquisition, subject to customary regulatory approvals, was conducted at a valuation of $490 million. The transaction is expected to contribute to Teleperformance’s earnings per share from the first year, before the allocation of the purchase price. The acquisition aligns with Teleperformance’s capital allocation priorities focused on creating long-term value with strong cash returns. The deal is anticipated to close in early 2025, pending standard regulatory approvals.