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”  and 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.”

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.

Source:  Bertelsmann – Arvato

Editorial Comment:  What are the weaknesses of the Arvato CRM division which prompt such a decision?  Are Silicon Valley players stifling Arvato’s CRM growth perspectives?