Synnex Acquires Minacs, Silencing Convergys Buyout Rumors

Outsourcing firm Minacs has finally been sold to US-based distributor Synnex Corp for $420 million, ending long-running rumors that Convergys was in talks to buy it out.
Once the deal is closed, Synnex will fold Minacs into its wholly-owned subsidiary Concentrix just the way it did when it purchased IBM’s BPO unit in 2013.
The deal bolsters Concentrix’ service offerings and widens its reach throughout Latin America, India and Canada. More than anything else, Minacs will inject new blood into Concentrix’ marketing and IoT offerings, say analysts.
Concentrix already operates delivery centers in several Latin American countries including Brazil, Uruguay, Costa Rica, Colombia and Nicaragua. Now, Minacs will add Mexico, the Dominican and Jamaica to its fold.
Concentrix grew dramatically in 2013 when it took control of IBM’s BPO unit Daksh for more than $500 million. The Fremont, Calif.-based outsourcer has since launched nearly half a dozen delivery centers in the region.
In the past two years, its headcount has increased by 30%. There is no question that Minacs will further boost its operation. Synnex may particularly leverage Minacs’ proprietary marketing automation tools to strengthen its distribution networks.
Although originally a Canadian firm, Minacs became Aditya Birla Minacs after Indian business conglomerate Aditya Birla Group purchased it for $125 million in 2006. Minacs started offering IT services after it acquired PSI Data Systems in 2009.
It went on to buy London-based Compass BPO to add finance and accounting services to its portfolio. In the same year, it acquired the Minnesota-based Bureau of Collection Recovery to add accounts receivable management and collections services to its portfolio.
Synnex expects the deal will be closed in the current quarter, and says Minacs Group CEO Anil Bhalla will stay on and join Concentrix’ senior executive staff.
According to an article in India’s economic daily Business Standard, Concentrix is now focusing on analytics, process transformation and consulting, with analytics alone expected to account for 15% of its revenue in the coming months.