A provider of business outsourcing services, iQor announced on April 1, 2014, that it had finalized the acquisition of the Aftermarket Services of Jabil Circuit, Inc. Through the acquisition, iQor seeks to position itself as a leading global firm in a $40 billion market focused on customer relationships and product support.
Jabil Aftermarket Services provides clients across a range of industries such as retailers and electronics makers with customized aftermarket solutions. The deal integrates Jabil Aftermarket Services’ experience in product support with iQor’s emphasis on customer support to form a distinctive organization that meets the needs and expectations of customers.
Jabil Aftermarket Services will become a separate business division of iQor, operating as iQor Aftermarket Services. The merged company will have over 32,000 employees and approximately $1.5 billion in revenue. In addition, the firm will operate in 17 countries.
iQor CEO Hartmut Liebel, who was formerly served as the CEO of Jabil Aftermarket Services, said, “We are excited to welcome the more than 13,000 Aftermarket Services employees to iQor.”
In late 2013, the private equity firm HGGC bought a unit of Jabil Circuit, Inc., a contract electronics manufacturer, for $725 million. The transaction marked the biggest add-on deal in HGGC’s history. In addition, the acquisition of Jabil’s warranty repair unit was the fourth transaction in HGGC’s quest to build up iQor Holdings, an outsourcing specialist. When combined with iQor Holdings’ projected growth, the purchase of Jabil’s Aftermarket Services business unit will more than quadruple iQor’s revenue and bring its total number of employees to 31,000.
The deal was quarterbacked by Gary Crittenden, the chairman and managing partner of HGGC, who also serves as the chairman of the board of iQor. HGGC appears to be a logical buyer for Jabil’s Aftermarket Services unit (warranty and repair) because iQor concentrates on customer service, and the Jabil unit focuses on the replacement and repair of consumer products. In addition, both companies serve many of the same clients.
In mid-2013, HGGC hired Hartmut Liebel, the former CEO of Jabil Aftermarket Services, to oversee iQor. Crittenden said that HGGC plans for a long-term investment in iQor.
As managing partner and Chairman of HGGC, LLC, Gary Crittenden takes an active role in ensuring the success of its portfolio companies. Gary Crittenden presently chairs the boards of directors of two such companies, iQor and Citadel Plastics Holdings, Inc.
iQor relies upon technology-assisted hiring in order to find new ways to excel and provide the best service possible to its clients. In large part, that means making an effort to seek out and retain the best people. iQor operates an initiative it calls T.R.I.P., which stands for Talent Referral Incentive Program, to encourage its employees to refer family members and friends to the company. If an employee’s referrals go on to become employees themselves, the referring employee receives a monetary reward.
To find the best employees from its pool of referrals, iQor makes use of an online emotional aptitude test that measures key metrics, including likelihood to remain at the company, analytical skills, and level of motivation. Once a potential hire becomes an employee, he or she receives training through iQor’s online university, sQool, and can take advantage of opportunities for advancement, including periodic reviews and eligibility for increases in pay.
In addition to fulfilling his responsibilities as the CEO and managing partner of HGGC, LLC, Gary Crittenden serves on the boards of several HGGC portfolio companies. Gary Crittenden’s current board positions include chairman of the board at iQor.
iQor has recently expanded by acquiring another business. In late 2012, iQor announced its acquisition of the CCT Group, which provides business customer care services (in-bound telephone customer service) in contact centers around the world.
Speaking around the occasion of the acquisition, iQor’s CEO said that the company had decided to acquire CCT as part of an overall strategy to broaden the platform for its analytics and technology-enabled solutions. iQor’s core business areas lie in interventions like collections and bankruptcy, processes like data entry and credit-card charge-backs, enablers like business intelligence and customer analytics, and customer care, including technical and product support.
CCT had a particularly strong presence in several verticals that iQor had targeted, including telecommunications and business services, as well as a broad footprint in the Philippines and Latin America. For more information about the deal, visit www.iqor.com.
Intelligent Solutions Outsourcing
Gary Crittenden serves as a managing partner and CEO at HGGC, LLC. Additionally, he is chairman of the board of directors at two companies within HGGC’s investment portfolio, Citadel Plastics and iQor. The latter firm, a New York City-based outsourcing solutions and customer contact business that specializes in real-time data analytics, provides its services to a select set of vertical markets including financial service, utilities and health care. Through its operating centers in 39 locations around the world that are staffed by more than 17,000 specialists, iQor has the capability to help any business develop innovative ways to care for and understand customers, helping to drive revenue growth while strengthening clients’ brand and marketing image.
Under Gary Crittenden’s leadership as Chairman of the Board and a team of outstanding operating executives, iQor offers extensive resources to its clients. The company provides services such as outsourced management of accounts receivable, comprehensive IT solutions for back office processing, and its signature customer care solutions. In addition, the company formed the iQor Innovations Lab, which is comprised of a team of professionals and analysts who can provide comprehensive information about customers to the firm’s clients, enabling more targeted marketing. By focusing on what it calls “Customers’ DNA,” iQor leverages large data sets to discover plans and models that allow businesses to thrive while providing satisfaction to its customer base.
The chairman of the board of iQor, Gary Crittenden serves as the CEO of HGGC, LLC, a private equity firm that has invested heavily in the customer contact management company. Gary Crittenden brings more than three decades of experience these ventures; previously he worked with such companies as American Express, Monsanto, Citigroup, and Sears Roebuck & Company.
Recently, Customer Management IQ organized “Big Data for Customer Management,” a free online summit for industry professionals. This opportunity featured presentations from customer management leaders such as Norman Merritt, the president and CEO of iQor. A global firm that specializes in developing outsourcing solutions for clients, iQor prides itself on “understanding each customer’s DNA.” During his talk at the Big Data for Customer Management Summit, Mr. Merritt encouraged attendees to map their customers’ genomes, explaining how customer service operations can increase value with applied analytics. Several other speakers also offered advice on how companies can strategically incorporate Big Data into their business plans to boost efficiency, profits, and overall customer satisfaction.
This innovative summit took place on May 22 and May 24, beginning at noon Eastern Time each day. Attendees joined the online dialogue from workstations around the globe.