European business services M&A ‘remains mixed’
Thu, 19 Apr 2012
European M&A activity in business services had its worst month since late 2010 in February and the outlook “remains mixed”, according to financial services firm Baird.
Baird’s ‘Business Services Sector Review’, which covers the business process outsourcing [BPO], human capital and industrial services sub-sectors, shows transaction volume down 26.4% to 726 in February, the lowest figure in well over a year.
However, the report also notes that “staffing companies [are] continuing to experience revenue growth, with margin improvement following suit”.
Two further themes for the sector were “near term focus upon the increasing sophistication of offerings and associated technologies” and “Heightened strategic and private equity interest in RPO (recruitment process outsourcing)”.
It also notes three acquisitions – Taleo by Oracle, Success Factors by SAP and Advantage Resourcing by Recruit as particularly significant in the sector in the last quarter.