Our approach > Case studies > Grupo Konecta

How Konecta has captured the Spanish-speaking outsourcing market

64,000

Employees worldwide

70%

Revenue growth

200+

Clients

Overview

Key facts

Sector

Business Services

Headquarters

Spain

Investment date

December 2015

Ownership

50%

Exit date

March 2019

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Konecta is a market-leading provider of Business Process Outsourcing (BPO) services in Spain and Latin America, as well as adjacent services including outsourced contact centres and customer relationship management. The group ranks among the top five global providers in the banking and insurance industry. It operates 60 contact centres with nearly 50,000 available seats across Europe, North Africa and Latin America.

A leader in a high-growth market

Konecta is a market leader in a young and fast-growing sector. Its business has evolved from the provision of call centre activities to higher value-added back-office and BPO services, enabling the group to offer a broader range of technical support to its clients.

The outsourcing and offshoring trends among large corporates are structural, creating strong potential for continued organic growth. The sector remains fragmented, with several leading national players. However, as clients increasingly demand global outsourcing solutions, there is a clear opportunity for consolidation.

This dynamic aligns well with PAI’s proven track record in helping its portfolio companies to internationalise and grow through M&A. PAI also has considerable expertise in outsourcing, notably through its successful investment in Swissport.

Transforming Konecta

PAI invested in Konecta on a proprietary basis in December 2015 alongside the vendor, Banco Santander. The objective was to accelerate Konecta’s organic growth and implement an active buy-and-build strategy in Spain and internationally, with a particular focus on Latin America.

PAI’s decision to acquire Konecta was underpinned by strong market fundamentals in the BPO sector and the anticipated wave of consolidation. The Firm’s ambition was to build a market leader in Spanish-speaking countries and position Konecta among the most advanced players in Europe.

A bespoke partnership

The close relationship established with Banco Santander and Konecta’s management team illustrates the strength of PAI’s local presence and longstanding partnerships.

PAI’s expertise in Business Services also enabled the Firm to source an attractive proprietary opportunity and support the transformation of a solid business into a market leader.

50/50

Governance with Banco Santander

Building a leader in Spanish-speaking BPO services

Prior to acquisition, PAI had identified a number of actionable acquisition targets in Europe and Latin America. As a consequence, Konecta completed two major acquisitions within the first 12 months of ownership: B-Connect and Allus.

These acquisitions significantly strengthened Konecta’s presence in Latin America. In particular, the group became the leading operator in Colombia and the undisputed leader in Spanish-speaking countries, supported by strong growth prospects and a robust acquisition pipeline.

In March 2019, PAI sold its stake in Konecta to Intermediate Capital Group and the Konecta management team.

110%

EBITDA growth