Bertelsmann Evaluating Strategic Options For Arvato CRM Businesses - Bertelsmann SE & Co. KGaA

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Press Release

Press Release | Gütersloh, 01/31/2018

Bertelsmann Evaluating Strategic Options For Arvato CRM Businesses

  • Review takes place as part of Bertelsmann’s corporate strategy
  • Options include partnerships as well as a complete or partial sale
  • CRM business in the French-speaking territories will continue to be managed by Bertelsmann
  • Bertelsmann CEO Thomas Rabe: “We want to sustainably strengthen our CRM businesses”

Bertelsmann will begin evaluating various options for the further development of the Customer Relationship Management (CRM) division of its services subsidiary, Arvato. The Supervisory and Executive Boards of the international media, services and education company today decided to initiate the process. The options being reviewed include partnerships as well as a complete or partial sale of the CRM businesses. The Arvato CRM business in the French-speaking territories is excluded from this strategic process; it will continue to be managed by Bertelsmann. The process is expected to take several months.

Thomas Rabe, Chairman and CEO of Bertelsmann said: “Bertelsmann is pursuing a corporate strategy focused on transformation and growth. It has made our company significantly more dynamic, more digital, more international and more diverse than it was just a few years ago. The revenue share of high-growth businesses, into which we have invested more than €4 billion since 2011, has increased from 20 percent to more than 30 percent and is expected to account for 40 percent in the medium term. As part of this corporate strategy, we are now reviewing various options for Arvato's CRM businesses, including partnerships as well as a complete or partial sale. Our goal is to sustainably strengthen the Arvato CRM businesses, which have great potential.”

Thomas Rabe: “Arvato's CRM businesses are growing profitably, and serve renowned clients in industries such as IT and high-tech, telecommunications, as well as in banking and insurance. They hold market-leading positions and provide further growth potential. In recent years, we have invested significantly into our CRM businesses, among others in the digital transformation. We are convinced that the process that is now beginning will highlight new opportunities for the long-term development of the CRM businesses, and that this business holds interest for various potential external partners. Throughout the process, we will remain aware of our responsibility towards our employees as well as towards our clients in these businesses. The French-speaking CRM business has been developed successfully with a partner for years, and will continue to be managed by Bertelsmann in future.”

Arvato CRM Solutions is one of four Arvato business units alongside Arvato SCM Solutions (Supply Chain Management services), Arvato Financial Solutions (financial services) and Arvato Systems (IT services). Arvato CRM provides a full range of Customer Relationship Management services, including service delivery centers with solutions such as live chats, video identification procedures, and the moderation of social media channels. Excluding the French-speaking business, the group employs around 36,000 people at more than 90 locations worldwide and offers service solutions in more than 30 languages. In 2017, the group generated revenues of around €1 billion outside the French-speaking territories.

About Bertelsmann
Bertelsmann is a media, services and education company that operates in about 50 countries around the world. It includes the broadcaster RTL Group, the trade book publisher Penguin Random House, the magazine publisher Gruner + Jahr, the music company BMG, the service provider Arvato, the Bertelsmann Printing Group, the Bertelsmann Education Group and Bertelsmann Investments, an international network of funds. The company has 116,000 employees and generated revenues of €17.0 billion in the 2016 financial year. Bertelsmann stands for creativity and entrepreneurship. This combination promotes first-class media content and innovative service solutions that inspire customers around the world.