Quadrangle Group and Thomas H. Lee Partners’ $3.3 billion joint buyout of West Corp. (at nine times earnings before interest, taxes, depreciation and amortization) was the largest teleservices transaction during the second quarter of 2006 and accounted for 68% of the sector’s transaction value during the period, according to New York-based investment bank Petsky Prunier, which tracks merger and acquisition activity for marketers as well as market service firms.
And comparing the second quarter just ended with each of the past two second quarters, quality not quantity, was the order of the day. Four deals, worth $3.7 billion, were consummated in the second quarter of this year. In last year’s second quarter, eight deals were transacted with a total deal volume of $127 million. In the second quarter of 2004, 13 deals were orchestrated with a total deal volume of $1.2 billion.