- TTEC Holdings Inc (NASDAQ:TTEC) has agreed to acquire certain citizen experience and smart city assets of Faneuil, Inc., a subsidiary of ALJ Regional Holdings, Inc. (NASDAQ:ALJJ).
- TTEC will pay $140 million, less an indemnification escrow amount of $15 million. Faneuil is also eligible to receive additional earn-out payments of up to $25 million.
- The combination of TTEC Engage, TTEC Digital, and the Faneuil assets will enable TTEC to address public sector opportunities related to mobility, fleet management, congestion management, health and wellness, healthcare exchanges, labor and social benefits delivery, and emergent infrastructure citizen response systems.
- Faneuil CEO Anna Van Buren and a portion of her management team will join TTEC to run the acquired platform.
- TTEC held cash and cash equivalents of $148.9 million as of September 30, 2021. It expects to close the transaction during 1Q22.
- Other Faneuil verticals, including its utilities, non-health benefit exchange, commercial and other verticals, and Vistio will remain at Faneuil, which will continue to operate as a wholly-owned subsidiary of ALJ.
- Price Action: TTEC shares traded higher by 0.01% at $90.41, while ALJJ is up 19.5% at $1.40 on the last check Wednesday.
