CRM's Transcom Buys Canadian Contact Center Provider NuComm

By David Sims

TMCnet Contributing Editor

 

Transcom WorldWide S.A., self-described as a "European CRM and debt collections specialist," has announced that it has acquired 100 percent of NuComm International, a Canadian provider of contact center products.

A maximum cash consideration of $86 million will be paid in three installments, with an initial payment of $47 million and the remainder 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 $37.5 million.

NuComm had revenues of $115 million for the twelve months ended 31st July 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 supplier of contact center services and has been named one of Canada’s 50 Best Managed Companies for six years running. Established in 1991 as a consulting organization, the company ventured into the call center market in 1995.


The ISO registered company now employs over 3,000 people across 14 centers, with 10 centers based in Canada, 2 in the United States and 2 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 a further 1,500 seats.

Keith Russell, President and CEO of Transcom, said with NuComm, "we are firmly established in North America, the largest CRM and CMS 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 customers."

Last month Transcom, a Swedish customer relations management (CRM) outsourcer, announced the opening of its fourth contact center in Germany, this time in Dresden. The site currently has 150 employees. Eventually, an additional 300 agents are planned for this facility.

The service provider is opening the center in order to meet the growing needs of its clients in the German-speaking market. Transcom specializes in various types of CRM, such as telemarketing, outbound communication, web servicing and credit management services.

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David Sims is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.