Hello, welcome to today's call on Teleperformance's Agreement to Acquire Health Advocate. My name is Courtney, and I'll be your coordinator for today's event. Please note that this conference is being recorded, and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions. This can be done by pressing *1 on your telephone keypad to register your question. If you require assistance at any point, please press *0 and you will be connected to an operator. I will now hand you over to your host, Daniel Julien, Chairman and CEO of Teleperformance, to begin today's conference. Thank you.
Thank you. Good evening or good morning for the ones who are in the U.S. I'm very, very happy tonight to present to this group the brand-new Teleperformance signing of Health Advocate. With Health Advocate, we continue to strengthen our footprint on the U.S. healthcare market. Health Advocate is a highly sophisticated service company that helps something like 27 million employees of its 8,400 clients to navigate the U.S. healthcare system. Everybody knows it's a maze. Both Health Advocate help at the administrative level and at the clinical level. With a mix of health experts, whether in benefits or in the clinical field, nurses, doctors, with strong analytics and with a digital platform, Health Advocate delivers services. This makes this company extremely resilient, growing steadily, and very significantly profitable.
Today, Teleperformance is already significantly present on the U.S. healthcare market, either through our core service, you know we do customer service for many of the large health insurance companies in the U.S., and we also participate to the enrollment period through inbound acquisition. We are also involved right now in the healthcare U.S. market, thanks to LanguageLine Solutions, where healthcare interpretation between patients, nurses, doctors is our number 1 activity sector. Now we are climbing one more step in the ladder of healthcare. Why are we so interested by the healthcare market in the U.S.? First, it's a large and fast-growing activity sector. 18% of the U.S. GDP, probably going to 20% in 5-7 years from now.
Second, you will remember that Teleperformance mission is to help individuals to find easy solutions to the issues they encounter with the organization they have bought a product or a service from. The U.S. market, the U.S. healthcare market, is so fragmented, so complex, so difficult to navigate, that 40% of the Americans do not know what their plans cover. This is specifically true in case of Anthem X, for example. As Health Advocate makes it simpler, easier, more cost-effective for the U.S. citizen, it fits perfectly TP, Teleperformance global promise, and it fits perfectly our strategy to go more into added-value services. With that, I would like to give the floor to Scott Klein, the President of the Specialized Services at Teleperformance, and also the CEO of LanguageLine Solutions, who is going to take under his umbrella Health Advocate. Scott, please.
Thank you, Daniel, and good day to everybody. Could we advance to slide 4 , please? When we get to slide 4 , you'll see the beginning of the Health Advocate business overview. When you think about Health Advocate, it's a solution to a real problem. Coping with the complexity of health insurance is not easy, especially here in the U.S. Many health plans have very complicated design, and they're very challenging to navigate. Health Advocate is a consumer-focused health platform that is focused on human touch and is driven by data and technology to simplify the healthcare experience for the members. Those members are actually the employees of our client's company. When you think of Health Advocate, the business breaks out into two main areas.
The first, navigation and advocacy, is the part of the business where we help these members understand their medical conditions, try to answer their questions, try to help them and guide them to find the best care that they can get. This is a service that has a high level of human touch to it. These are doctors and nurses and other professionals that are helping to dispense this kind of information. Now, the other biggest part of the business is what we call Health and Wellbeing. The mission of that specific focus is to help make sure that these members are taking good care of themselves.
With our amazing data analytics and our proprietary CRM platform, we're able to know anytime we're talking to a member, what kind of conditions they have and how we can help them better manage and maintain their lives in the best possible way. Next slide, please. In the organization, we have over 700 Health Advocates that are specific specialists in the U.S. healthcare system. Health Advocate has a large client base, well over 8,000 clients, including many Fortune 100 companies. Those 8,400 clients of ours include over 27 million individuals that are insured by these client companies. Employers invest in Health Advocates to help control their medical insurance costs. They invest to improve healthcare outcomes for their employees, they do all of this because they know that a happy and healthy employee is also much more productive.
It's a very strong EBITDA business. Soon Olivier will walk you through the financials in a bit more detail. It's the kind of business that we can invest in and grow based on those very strategic investments that we make. This is a business that is not dependent on any single client. Our largest client is, I think, about 3% of the business. You can see in the lower right-hand corner that the top 50 clients make up less than a third of the business. Next page. A key strategy for us in specialized solutions is a balanced focus on people, process, and technology. That was another reason why Health Advocate was so attractive to us, because they also have that same focus on people, process, and technology. When it comes to people, it's a high-touch model.
There are people available that can be spoken to, professionals, whenever an individual needs it. We also have very sophisticated tools that members can take advantage of, really from their computer, from their phone, or any other digital device. These solutions that are available online are actually customized by clients. To the employee, they see that it is their employer that is reaching out to take good care of them. Now, our platform is patented. It uses predictive analytics to better understand the individuals that are being talked to. Those two combined are sort of the secret sauce of Health Advocate, because it is the sophisticated tools that we have, supported by a cross-functional team of real experts, are what makes this business so valuable.
We have doctors, nurses, benefits specialists, claims specialists, behavioral professionals, as well as counselors and coaches. Health Advocate are specialists that understand how to navigate the complex healthcare system and help these individuals do just that. Next slide, please. Our client companies invest in Health Advocate because of four outcomes that they are after. They want better health outcomes for their employees, they want to help their employees close gaps in care, they want to increase engagement, of course, these employers very much want to control their own costs.
In order to do that, as you can see on the left hand of this slide, we get data from many different sources that help us best understand the needs of all these different individuals. There in the middle of the slide is just a sampling of some of these great high-touch solutions that we provide to our clients. We help them transparently see pricing. We help our members better understand what's the best kind of provider that they can get for their specific condition. We also help close gaps in care, and we provide a lot of valuable, detailed analytic reporting based on everything it is that we do. Next slide, please.
This is a case study, a very typical case study of what Health Advocate does. This particular one is a company that has 15,000 employees, and as a result of that, 37,000 individuals, including the family members of those employees, are covered and supported by Health Advocate. As you can see, this was a client that found that 15% of their employees were making up 37% of their medical expenses as an organization. This company came to Health Advocate looking for a way to better care for their employees and save money at the same time.
As a result of our analysis and the work that we've done, we found 65,000 gaps in care among these 37,000 individuals. As a result of the work that we did, we were able to close 45% of those 65,000 gaps, and we were able to do so based on our high-tech, high-touch model. The result, the cost trend for this company went up by 2.6% versus a marketplace that was going up nearly 5%. The client benefited by seeing an increase that was almost 60% less than what they might have otherwise seen had they not taken this step and made this investment. For this organization, that meant EUR 5 million of total savings, but that wasn't the end of it. Because of this great initial interaction, the company was able to provide additional solutions to this company.
In 2015, they provided just one solution, but in 2020, that was up to three different solutions, and it resulted in a 26% revenue CAGR over this time horizon. As you all know, the more solutions that we can offer to our clients, the stickier it makes us. Now I'm going to introduce you a little bit into our acquisition rationale. If we could advance forward two slides. I want to share with you why this is such a good strategic fit for Teleperformance and of course, for Specialized Services. Think about the impact that LanguageLine Solutions had on Teleperformance when that acquisition took place four years ago.
We look at Health Advocate and expect to see the same kind of results as we move forward and continue to invest and transform this business. It has a complete platform. It has a focus on operational excellence. It is a subscription-based model, so it's very reliable and predictable as to what kind of results we're going to get. What's most critical to us is the strong potential for future growth, because that is what we are all about. With that, I'd like to turn it over to our Chief Financial Officer, Olivier Rigaudy. Olivier?
Thank you, Scott. I'm going to try to show you why this acquisition is as not only business rationale but also financial rationale. Can we move to the next slide, please? We are exactly in line with the path to achieve our 2022 objectives that have been set up at the last investor meeting we did in California at that time. This operation is accretive. Not only we are going to strengthen the top line with Health Advocate, that is going to benefit from a positive momentum in the future within Teleperformance, but we are going to enhance also our EBITDA margin by a figure which is roughly around 30 basis points based on pro forma figure from 2020. We forecast also an accretive impact of around 7% on an EPS excluding amortization of intangible.
This is what we do forecast on a pro forma basis for 2020 for Teleperformance. We are, of course, on the right path to achieve our objective of 2022, which is based on two things. Obviously, increase the contribution from the specialized service business that all you know deliver outstanding figures in terms of growth, but also in terms of EBITDA margin. We do believe that we are well-positioned to achieve our EUR 7 billion revenue figure target and our EBITDA margin at least 14.5% by 2022. That is our objective for the group. We will publish next week. Next slide, please. We'll publish next week our sales figure, and I'm not going to speak about our sales figure for Q3 now. Next slide. Slide 13, please.
On slide 13, you will find the profile of Health Advocate over the last years. You will see that Health Advocate has grown dramatically from 2017 to 2019, a CAGR of 9% growth over these years, arriving to EUR 139 million at the end of last year. Made of course, navigation advocacy, that is roughly two-third of the business, and one-third from the health and well-being. During this period, and this is second part of the slide on the right side, you see that the growth of the EBITDA has been even more important because this company has been able to deliver a growth of 19% over these two years, arriving to EUR 48 million by 2019, with a margin that was 34%. Good margin, good figures, good growth. If we move to next slide now, on slide 14.
We do believe that here you'll find the figure of EBITDA margin for Health Advocate, which is 36% on a recurring basis and EBITDA margin of 27% too. Both of them are going to enlarge and to increase the ratio of Teleperformance by 30 basis points. As I mentioned earlier on, this is going to deliver to increase our EPS on a pro forma basis by around 7% starting year one. This is not absolutely taking account any synergy at that time, any synergy of course, but also any synergy of growth that was mentioned by Scott a minute ago. If we go now to slide 15, you will find the main characteristic of the transaction.
The enterprise value of the company is $690 million. This will be financed only through debt, and we do believe that it won't have no impact on our rating. We do believe that this transaction should be closed in Q1, maybe earlier on, depending on the regulatory approval that we are asking for in California and in U.S. too. The leverage ratio should be come back to a level of around two by the end of 2021, next year, which is very acceptable. The financial profile of Health Advocate will strengthen our ability to generate strong cash flow.
What I just wanted to tell, and I mentioned the model case of the successful financial integration of LanguageLine Solutions. LLS has been bought four years ago, and it was mentioned by Scott at that time some minute ago. During this period, in four years, LanguageLine has grown by 25%, which means a significant amount of sales, while the EBITDA has grown by 32%. We do believe that we could try to achieve such figure for Health Advocate also.
If I want to summarize today the four characteristics. We are buying this company on the multiple that is below that what we are bought by the market, clearly. It is relative in term of value. It's also relative in term of P&L. True from the EBITDA figure, but also from the EPS. We just saw that. This company has a DSO that is positive and a net working capital that is positive, sorry. We are going to improve also our EBITDA to cash flow figures. If we move now to slide 17, just to finish. We do believe this is a win-win deal, either for Teleperformance and for Health Advocate. For Teleperformance, as I told you a minute ago, it's another LanguageLine Solutions value creation story with integrated in the Specialized Services activity.
We develop also all of our size of client base in U.S., including many Fortune 100 company to serve with all TP product in the future. We are increasing, as mentioned by Daniel Julien a minute ago, our presence in this healthcare sector in U.S., which is promising. For Health Advocate, clearly, Teleperformance offer a possibility of new client. They get Teleperformance expertise in people, management, security, analytics, and automation, especially with LanguageLine Solutions. Of course, as mentioned earlier on, there will be the support of the group in term of management and financial support to invest much more in the future and to develop this company. I just want to finish by the slide 18 that is now visible.
We just put on this slide the Teleperformance points with our mission, vision, business mix, and financial, to see how much Health Advocate is ticking all the boxes. It's true for the mission, as mentioned by Daniel a minute ago, helping people to solve their problem on a daily basis. The vision, as also mentioned, simpler, faster, safer, which is high-tech and touch. It's exactly what we are doing elsewhere in the company, in the group. We have a business mix, with integrated approach to service from analytics to customer experience. Strong expertise in high potential sector like healthcare, of course, worldwide expansion in BPO market. We are looking for U.S., which is a big and a major market.
Finally, in term of financial, as you understood, this is helping to deliver our figures and accretively. That's what I wanted to tell and to finish and leave now the floor open for question to Mr. Julien, Mr. Klein, and myself, if needed. Thank you all.
Thank you. As a reminder, if you would like to ask a question on today's call, please press *1 on your telephone keypad. Please ensure your line is unmuted locally, and you will be advised when to ask your question. Question comes in from the line of Sylvia Barker, calling from JP Morgan London. Sylvia, please go ahead.
Hi, evening. Thanks for taking the questions. Could I ask a question on navigation and advocacy versus health and wellbeing, please? Maybe can you just talk about how the two are organized? Presume you have quite large call centers run for the former business. Maybe you can tell us how many employees you have and how that's organized, and then in the second business, do you actually employ the nurses and doctors yourselves or do you have agreements and maybe if you can touch on profitability, differences between the two businesses. Secondly, around the 7% EPS accretion, it seems like you're assuming relatively healthy profit growth in 2020 and 2021. Can you maybe talk about the expectations that you've based into that? Finally, the selling process was obviously quite well flagged, so how competitive was that? Thank you.
I think the questions are mostly for Scott Klein, except the financial one for Olivier. Scott, if you want to answer, please.
Yes, please. Yes, of course. Sylvia, thanks for those questions. Basically, the navigation and advocacy business is about 63% of what the company does. Basically, navigation and advocacy is what the company was originally based on, and that is the ability to have employees of our clients better understand what their options are for treatment, when they know what their condition is, or maybe even to help them find a doctor to initially get a diagnosis. Health and wellbeing is a proactive service that we're engaging with our clients' employees to make sure that they're taking good care of themselves. Are they due for a physical? Are they due for some specific medication? Is there some procedure that they need?
While our team is on the phone, thanks to our very sophisticated analytics and CRM tool that's proprietary to this business, we can dispense that kind of advice. Now we have about 700 health advocates that work here in the U.S., and those are made up of call agents, nurses, registered nurses, counselors, and other professionals to be able to dispense the kind of help that these individuals need. With that, I'll turn it over to Olivier to answer the other part of your question.
Thank you, Scott. As you can imagine, I'm not going to give you in detail our 2020 landing and 2021 objective now. What I can tell you that we followed the global consensus that has been gathered from the analyst, which is a little more than EUR 5.5 billion for 2020, which is a growth that is in the range of 8% like for like, with an EBITDA margin of 12.6%.
I would like to add something. This is Daniel Julien. I would like to add something to the answer. You will notice with Scott's answer that this is not a heavy people business. This is due to the portal and to the digitalization that has been permitted by the analytics. You can see that the revenue per employee is extremely high and is very far from the usual benchmark of service companies or customer service companies or BPO.
Thank you. That's helpful. It is basically a very different business model from, I guess a lot of the rest of Teleperformance. Sorry, just in terms of profitability, could you comment on the difference between the two segments if they are run separately, the profit level as well? Then sorry, just Olivier, on the 7%, my point was more around what you expect from Health Advocate rather than the overall tech business, which obviously we could use consensus or our own estimates for that. Just curious whether you're still assuming 20% EBITDA growth into next year.
For 2021, I've not made any forecasts today. I'm just taking the figures that they deliver, that they are going to deliver for 2020, which are presented in the.
Okay.
Which is EUR 140 million and roughly EUR 50 million EBITDA.
Great. Thank you very much.
Profitability by sector, I cannot answer like that. I prefer to give you much more detail later on that point.
I don't know if we are going to go to this level of detail, as we don't go to this level of detail for our other businesses.
Yeah.
Thank you very much. Maybe we can pass to the next question.
Okay, the next question comes in from the line of Edward Stanley, calling from Morgan Stanley. Edward, please go ahead.
Hi all. Thank you for taking my questions. I got three as well, please. You talked a lot about identifying gaps and closing them and adding value to your customers, but I apologize if I'm being slow, but how do you grow this business? You talk about one part of it growing faster than the other, but is this by adding more clients? Is it by charging by inbound interactions? What's the price and volume contribution? I'm just trying to understand really how sustainable the growth could be, because clearly the track record is very good.
The second question, healthcare is obviously a highly sensitive political topic in the U.S., and I'm just wondering, a week before the election, whether you think that has any kind of bearing on the group or and whether the subscription model of Health Advocate means that actually you're agnostic to anything to do with the politics around it. Finally, I think more for Olivier, you say there are no synergies in the 7% accretion number. LLS has decent healthcare exposure. The core is 16% health and insurance, I think. To what extent do you think you can cross-sell Health Advocate with the rest of the core business and specialized services? Thank you.
I think that the answer are for Scott. I am going to keep for myself, the question about the U.S. political environment, because I'm going to love to answer to that. Scott, if you want to answer to the rest.
Sure. Yes, absolutely. Great questions, Edward. As far as where is the growth opportunity, first of all, we have a number of different solutions that we offer in the marketplace. The opportunity to sell more and more of what we have to our existing clients provides a significant growth opportunity. When you think about the number of clients we have, just above 8,000, that leaves many, many thousands of, maybe even tens of thousands of other potential clients that are out there, to be able to generate net new revenue of all of these services. As far as synergies go, we definitely have the opportunity for our core Teleperformance services to be able to have entrée to those over 8,000 clients of Health Advocate.
That's not only for the core business of Teleperformance, but other parts of our specialized services like LanguageLine. Of course, the opposite is true as well. The treasure trove of Teleperformance clients, of course, are natural opportunities for Health Advocate. Now to get your answer to the politics around the election, I'll turn it back to Daniel.
Thank you very much. As I'm half U.S. and half French, I'm going to be less engaged in what I say. I am really convinced, we are really convinced that whatever is going to be the result of the election, the U.S. healthcare system is extraordinarily resistant to major transformation. The complexity of the system is going to continue to be weighted. Whatever is the political agenda, we discover that it's not easy to move the cursor. Yet, the subscription model of Health Advocate is a great comfort for us, additional comfort for us. We feel, we don't think that the result of the election in a week from now are going to transform significantly our business and the market on which we operate. Basically, the U.S. are not ready for social democrat healthcare system.
Fair enough. That's very clear on the election point. Thank you. I just have one quick follow-up for Scott. You talked therefore about growth coming from a combination of new versus existing customers. Can you give us a feel over the last two years? You say the business has grown at 9% CAGR. Is that 50/50 new versus existing, or is there a weighting towards existing versus new customers?
Edward, I don't have the specific answer, but there's no question that the bulk of the growth has come from growth with existing. The opportunity for growth from new is meaningful as well.
I also would like to add something. I know that Scott Klein is a pretty humble leader. When Scott Klein takes a company under his umbrella, he is a very strong factor to increase the dynamism of a business.
Thanks, Daniel. Let's move to the next question.
The next question comes in from the line of Antonin Baudry calling from HSBC. Please go ahead.
Yes. Good morning, everyone. Thank you to take my question. I did not understand the business model of Health Advocate. It is a subscription model, but what do you mean? Who pay for the employees, and is it a pay per use business model? How does it work? My second question is, what is the competitive landscape of this type of solutions? I have a third question on the deal itself. What drive the disposal of Health Advocate by Intrado Corporation? Was it a competitive process on what makes the choice of Teleperformance against the potential other bidders? Thank you.
Maybe Scott could answer the two first question, and I'm going to keep the political one, which mean was it a competitive bid or not?
The service is paid for by employers for the benefit of their employees. There is no cost to the individual employee or their family member for this service. It is paid for by the company. As far as the competition goes, it's very fragmented. There are a number of small competitors out there that do different parts of what Health Advocate does. What makes Health Advocate so unique is that we can provide the complete 360 degrees of coverage that employers want for their employees, they no longer have to work with other providers. One example of that would be our emergency assistance program, where we offer this service to the employees of our clients that are in trouble. Maybe there's a drug problem, an alcohol problem, an issue with a loved one.
Our EAP system and service is there to support those individuals, that eliminates the need for our clients to have to go and seek out a company that only does employee assistance. Daniel, why TP?
First, the question was about it to be a competitive bid or not. You have seen that Apollo had chosen Goldman Sachs, and you can imagine that Goldman Sachs would run, in any case, a competitive bid. Number 1. Number 2, why TP? I would say when we explain Health Advocate, at least to ourselves, we see a perfect fit. Perfect fit rarely come just by chance or suddenly by the mail. In fact, there is a little bit like in the case of LanguageLine Solutions, a long history of interest of Teleperformance or Health Advocate, and I would say the Apollo team and the Teleperformance team already had the opportunity to dialogue previously. Basically, the fact that there was a pretty detailed knowledge of the company and of the people.
Second, the certainty of the deal that Teleperformance would bring on the table versus other solutions. Third, as usual, our ability to move and decide fast. Thank you.
Thank you. I have a quick follow-up on the growth of Health Advocate. Would it be possible to have an indication of the top-line growth of this company in H1 2020? You provide 2019 insight, so what is the trend of growth for the current year? Thank you. This question is more for Olivier, I think.
Maybe I can answer.
Okay, go ahead.
I can answer. The growth for 2020, in fact, the two major businesses continue to grow as usual, but there is a small marginal business that is linked with vaccination process that dry up in 2020 a little bit like for Teleperformance, we had TLS that dried up. The growth of this company in 2020 is going to be flat or very slight growth, even if the percentage of EBITDA grow from 34% to 36%. We are super confident that the growth for 2021 is going to be, again, in their benchmark.
Can we maybe have two last questions before we break up?
The next question comes in from the line of Rory McKenzie calling from UBS. Rory, please go ahead. Hi, Rory. Is your line muted?
Hello, can you hear me?
We can hear you now. Please continue.
Great. Thank you. Sorry about that. It's Rory here. Just two, please, on the contract structure. Are these contracts paid at the start of the year or monthly? In your comments about financials, you talked about aiming to improve working capital. Can you comment on what you've seen there? Secondly, in terms of the current client book, what's the average duration of relationship with the current clients? I appreciate that it's very diversified, are there any big renewals or a wave of renewals we should be aware of? I don't know if, say, lots of clients were onboarded five years ago or something. That'd be helpful to know. Thank you.
Scott, again, you are the expert.
Sure. I'll handle the pay cycle and the average length and turn it back to Olivier for working capital. The clients pay for the service on a monthly basis, the exact same way they are paying for their health insurance. It's on a per employee per month basis. As far as your question about the average length of the contracts, I don't have a specific number to give you, but I can tell you that with so many, 27,000 plus clients, and no individual client representing a significant amount of the business, we looked at this very carefully, and those renewals are spread out over time. Many of these contracts are long-term. Some are shorter term, but certainly at least one year in length, most more than that, so that we didn't see any risk on renewals.
Scott-
On renewals creating any kind of a problem.
Scott, you just mistake for one second LanguageLine Solutions with Health Advocate, because you say with 27,000 clients, when Health Advocate is only 8,400. It doesn't change what you said.
As far as the-
Thank you.
As far as D SO is concerned, as you can understand, that it's easier to build than the core service because it's based on employee people. People are paying quicker, as they are invoiced. That means around 42 days on D SO versus a little more, 20 more for Teleperformance core service.
Understood. That's helpful. Thank you.
Last question maybe before we break up.
Okay, the next question comes in from the line of Daniel Hobden calling from Credit Suisse. Please go ahead, Daniel.
Pierre, thank you. Just one last one from me, please. I think you mentioned that leverage is going to be back to around two times by the end of FY '21. Are we to think of this the same as the TLS, LLS, and Intelenet deals, as in buy one, take a year to integrate, and then think about going again? Is there more near-term M&A in the pipeline still? Thank you.
I'm not sure to have understood exactly your question. What we foresee is that the ability of the group. To repay the debt and to generate cash flow will lead to a level of net debt to EBITDA around two by 2021, which is totally acceptable versus our metrics, versus our size and versus our status. I don't know if I answered properly your question.
No, no. I suppose the other part to that is, would you consider pushing leverage higher in the near term if there are other M&A opportunities out there?
The group is always very careful on the level of the debt, even if the debt is cheap, and you know that very clearly. We are absolutely committed to keep our grade, and we are not ready to decrease, to start to get such a level of grade. Clearly, we are not ready to go far beyond.
Olivier.
Yes.
Olivier. As we cannot insert.
Of course.
There are many other opportunities for Teleperformance if we find the gem that is going to help to continue to build our profile.
The level of the indebtedness that we will get after this acquisition is really acceptable for the rating agency, and we are going to live with. Clearly, that is the point. Maybe the last question from Merrill Lynch.
The last question comes in from the line of David Roux calling from Bank of America. David, please go ahead.
Yes. Good evening, gentlemen. Thanks for your time. Two questions from my side. You spoke a bit about working capital. Could you perhaps talk about the CapEx intensity of this business? Is it higher than or lower than the existing Teleperformance business? Then sort of leading onto that, should this deal be accretive to the cash conversion profile of Teleperformance? Then my second question is, on the debt used to fund this deal, is Teleperformance using existing facilities or issuing sort of subsequent paper with this acquisition?
Okay. About the financing, we have different options, we might go for probably raise a different bond maybe later on, depending of the condition of the market. We are working on that. That could be an option. We have facilities that help us to, of course, finance the deal during this period before we refinance it on the longer term. That's the first point. About the DSO, the level of CapEx. The level of CapEx is by nature significantly lower than Teleperformance. Today, we are much more in the range of 2.5%-3% of the sales as of today. It could be.
Yeah, there is something that I would like to explain because it may seem strange. It's counterintuitive. Teleperformance core business, because it's mostly voice and synchronic, has a super high level of CapEx versus digital solutions that may be asynchronic. That's it.
Right. Thank you very much.
Thank you to all. I think we are going to stop there. Of course, the team here in Paris, with myself, Quy, and Julien, are able to take your call and your questions that you may have. We are, of course, ready to answer all the questions you continue to have to write your paper tomorrow. Thank you to all.
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