Through its outsourced work, BancTec keeps tabs on all sorts of financial transactions. The company offers electronic processing systems, business process outsourcing (BPO), software, hardware, and services for government agencies, banks, utility and telecommunications companies. It serves other organizations, too, that do high-volume financial transactions. BancTec's systems and software capture and process checks, bills, and other documents. Products include digital archiving systems, workflow software, and scanners. Services include cost estimates and contingency planning. As part of its business, BancTec operates more than 20 BPO centers globally.
BancTec operates its business in more than a dozen countries, including North, Central, and South America, as well as across the EMEA: Europe, the Middle East, and Africa.
The company conducts nearly half its business in the Americas. It's extending its reach in places such as India, however, through its BPO facility. BancTec is working to increase its productivity and improve profitability by automating some of its processes and by using lower cost labor in India.
BancTec's largest operating segment is its BPO services. The company is strengthening its focus on BPO and converting existing in-house clients to BPO clients as they look to cut costs. As part of a strategy to focus on its BPO business, BancTec sold its computer repair business, Information Technology Service Management (ITSM), to QualxServ (now Worldwide TechServices) for $17.5 million in cash and stock.
Mergers and Acquisitions
To expand its services menu and geographic footprint, BancTec regularly acquires existing companies. In 2012 it bought GTESS Claims Processing Business to allow it to chase after new markets, such as healthcare. The deal follows purchases of Beta Systems ECM Solutions GmbH (in 2010) and Privatgirot (2009) for content management software and a European presence in banking, insurance, and financial services, respectively.
Sales and Marketing
The company counts more than 1,800 companies among its list of clients. Located in some 50 countries, they include Aflac, Bank of America, Hewlett Packard, Swedbank AB, Discover Financial Services, and U.S. Bancorp.
Looking to raise $75 million, BancTec filed to go public in 2011 but withdrew the IPO a year later after agreeing to be sold to an unnamed buyer. Going public would have helped the company pay down debt. This wasn't the first time BancTec had tested the public market. Founded in 1972, BancTec was a public company until it was taken private in 1999 by investment firm Welsh, Carson, Anderson & Stowe in a deal worth about $525 million. In 2007 BancTec raised more than $350 million in a recapitalization to buy out Welsh Carson; however, it remained privately held with no institutional investor owning more than 10% of the company. – less