Genpact (NYSE:G) yesterday announced that it has inked a deal to acquire Rightpoint — a Chicago-based digital consultancy. The financial terms of the deal have been kept under wraps.
Founded in 2007, Rightpoint has gained popularity as one of the fastest growing technology consultancies in America. The company has five core solution areas — customer experience and engagement, commerce, digital products, digital workplace, and digital operations. It serves more than 250 Fortune 1000 companies.
The deal closure is subject to fulfillmentof customary closing conditions, which include the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Ross Freedman — co-founder of Rightpoint — will continue working as CEO of this business.
A Strategic Move to Strengthen Experience Expertise
The deal marks the merger of Genpact's deep process, domain, and digital expertise with Rightpoint's experience-generating potential (for both customers and employees). It is aimed to combine experience and process innovations so as to help clients drive end-to-end digital transformation in the expanding experience economy.
Inclusion of Rightpoint should increase Genpact's capabilities to drive transformative outcomes for clients.
The company has been making continuous investments to boost its experience expertise organically and through the acquisition of an experience consultancy, TandemSeven, in 2017.
Notably, the fast-evolving experience market is expected to generate more than $30 billion for middle and back office functions in 2019. In fact, according to Forbes, 89% of enterprises are currently competing on experience, reflecting a massive increase from the 2010 figure of 36%. Given this encouraging backdrop, the latest deal seems to be a strategic move on Genpact’s part to strengthen its foothold in the experience industry.
'Tiger' Tyagarajan, president and CEO at Genpact, stated, "I am very excited to have Ross and the very talented Rightpoint team join Genpact as we together help transform our clients' businesses in this experience economy."
Zacks Rank & Stocks to Consider
Genpact currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton (NYSE:BAH) , S&P Global (NYSE:SPGI) and Fiserv (NASDAQ:FISV) . While Booz Allen Hamilton sports a Zacks Rank #1, S&P Global and Fiserv carry a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for Booz Allen Hamilton, S&P Global and Fiserv is 13%, 12% and 10%, respectively.
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