French buyout firm PAI Partners has acquired a 40% stake in Spanish outsourcing firm Konecta with operation in six countries across Latin America. The capital injection is likely to prompt the company to expand rapidly in the nearshore region.
Backed by the European banking giant Banco Santander, Konecta offers a verity of back-office services, including customer care and retention, debt collection and sales.
The details of the transaction are undisclosed, though Spanish publication Expansión reports PAI paid around $145 million for its stake, giving the company a valuation of more than $336 million.
As per the deal, Santander will retain a 40% stake in the company, while Konecta’s chairperson and co-founder Jose Maria Pacheco will retain a 20% stake.
It is not clear how many people Konecta has employed in Latin America, but some reports say the region accounts for 30% of the outsourcer’s global revenue.
The Latin American countries where Konecta has operations include Brazil, Peru, Colombia, Chile, Mexico and Argentina. In Latin America, the company is growing slowly but steadily, whereas in Spain a large number of its employees have protested demanding a change in working condition.
Despite the fact that Spain went through a recessionary period following the burst of real estate bubble, the outsourcer has managed to double its revenue over the past five years. This year, reports say, Konecta expects to post $560 million in revenue.
The Madrid-based outsourcer has often expressed its goal to increase its working capital and leverage what it calls “economies of scale.” Increasing annual revenue in excess of $1121 million and making inroads into the domains of industry leaders are the aims the company is pursuing.
Founded in 1999, Konecta’s major industry verticals are telecommunications, utilities, banking and insurance. In recent years, the company is increasingly testing the tools of social and other digital technology to make its customer service more attractive.