LeadDesk, a cloud-based contact center software provider, has announced the acquisition of Telemagic, a Norwegian company operating in the same industry. This move aims to strengthen LeadDesk’s position in Norway and further expand its presence in Europe. Olli Nokso-Koivisto, CEO of LeadDesk, sees this acquisition as part of the company’s growth strategy to capitalize on opportunities in the fragmented European CCaaS market.
In 2023, Telemagic reported a turnover of approximately NOK 13.4 million with an EBITDA on the negative side of 0.3 million kroner. The purchase price for Telemagic is an enterprise value of NOK 10.8 million, with an additional purchase price of up to NOK 2 million depending on Telemagic’s financial performance in 2024. LeadDesk will finance the purchase through a 1.2 million euro loan, with an expected turnover impact of approximately EUR 0.7 million in 2024.
LeadDesk expects the acquisition of Telemagic to bring significant synergies and strengthen its market position in Europe. This strategic move aligns with LeadDesk’s vision to consolidate the market and provide AI investments for smaller companies and service providers that lack the resources to do so independently. Overall, LeadDesk aims to leverage the acquisition to enhance its offerings and drive growth in the competitive contact center software industry.
With this acquisition, LeadDesk hopes to become a major player in Norway’s contact center software market and further expand its reach across Europe. The addition of Telemagic’s technology and expertise will enable LeadDesk to provide even more advanced solutions and better serve its customers.
LeadDesk believes that this move will bring significant benefits to both companies involved, including increased revenue streams and enhanced customer service capabilities.
This strategic move by LeadDesk shows their commitment to expanding their business and providing innovative solutions for their clients within the contact center software industry.
The acquisition is expected to have minimal impact on Telemagic employees as they will be integrated into LeadDesk’s existing team.
Overall, this move by LeadDesk is a smart one as it allows them to expand their presence in Europe while also bringing new technology and expertise into their organization.
