Bain-backed Spanish CRM provider Atento sets terms for $300 million IPO

Atento, a Spanish customer relationship management provider owned by Bain Capital, announced terms for its IPO on Friday. The Madrid, Spain-based company plans to raise $300 million by offering 14.6 million shares (72% insider) at a price range of $19 to $22. At the midpoint of the proposed range, it would command a market value of $1.5 billion.

Atento was founded in 1999 as the call center operator for Telefonica Group, a diversified telecommunications firm and Spain's largest company. Bain Capital bought the spinoff in December 2012 for $1.3 billion. Atento is the largest provider of CRM business process outsourcing in Latin America and Spain, and among the top three providers globally based on revenue. It holds the number one position in Peru (35% market share), Brazil (26%), Argentina (23%), Spain (22%), Chile (19%) and Mexico (16%).

Its primary customer is still former parent company Telefonica, which accounted for 47% of revenue during the 1H14, down from 51% during 2011. Other large customers include HSBC, McDonald's, Samsung, Itaú (a joint bookrunner) and Santander (a co-manager). The top 10 customers accounted for 80% of 2013 sales. After the offering, Bain will retain a 69% stake in the company.

Revenue fell 1% to $1.2 billion for the six months ended June 30, 2014. Excluding the impact of foreign currency exchange, however, revenue increased by 10%, driven by strong performance in Brazil and the Americas. Revenue from the Telefonica Group increased by 5%, partially offset by economic conditions in Spain, and sales from non-Telefonica clients increased by 14%. Atento's adjusted EBITDA grew 6% to $132 million, which the company attributes to cost efficiencies related to the Bain acquisition.

Atento, which was founded in 1999 and booked $2.3 billion in sales for the 12 months ended June 30, 2014, plans to list on the NYSE under the symbol ATTO. Morgan Stanley, Credit Suisse and Itau BBA are the joint bookrunners on the deal. It is expected to price during the week of September 29, 2014.