Friday, December 02, 2022
Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in Chelmsford, Massachusetts , Harte Hanks has over 2,500 employees in offices across the Americas, Europe and Asia Pacific .
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A tuck-in acquisition. On December 1, 2022, the company completed an acquisition of InsideOut Solutions, a firm that specializes in third party inbound and outbound sales, for $7.5 million. The acquisition complements the company’s Marketing and Customer Care segments nicely, while expanding cross selling capabilities. The pruchase price is an attractive 3 to 4 times adj. EBITDA, post synergies.
Substantial synergies. The acquisition of InsideOut will broaden the scope of services offered by the company, creating more cross selling and lead generating opportunities. With a robust new business pipeline, management expects InsideOut 2023 revenue growth between 20% to 25%. The business is expected to be cash flow positive, generating $2 million to $2.5 million in EBITDA.
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