Teleperformance to Acquire Majorel for €3B Despite Slowing Growth; Stock Price Drop Offers Buying Opportunity

Teleperformance provides customer experience management services like customer support and sales assistance for over 1,200 clients. AI adoption could improve efficiency but not fully replace services.

Teleperformance plans to acquire competitor Majorel for €3 billion, consisting of €2 billion cash and €1 billion in TEP shares. Market reacted negatively but valuation seems reasonable.

Q2 results showed slowing growth and guidance reduced from 10% to 7% sales growth due to economic uncertainty. Share price fell significantly more than guidance reduction.

Valuation analysis shows downside risk appears minimal even with zero growth scenario. Current price offers margin of safety.

Main risks are unsuccessful Majorel integration and market saturation leading to pricing pressures. But outlook remains positive overall.