Synnex Corp has agreed to buy the BPO unit of IBM for $505 million as the U.S. technology giant opts to focus on high-margin business.
Synnex will pay IBM about $430 million in cash and $75 million in stock and the acquired unit will be merged with Synnex’s wholly owned subsidiary Concentrix, which has delivery centers in several countries including Costa Rica, Nicaragua, India and Philippines.
The purchase, according to analysts, bolsters Synnex’s BPO business and widens its reach in terms of geography and expertise, while Synnex said that the acquisition will make it one of the top 10 players in the BPO market.
“With our collective strengths in the CRM BPO market, this strategic acquisition will create an even more compelling value proposition for our clients and shareholders,” stated Kevin Murai, President and CEO of SYNNEX Corporation.
As part of the acquisition, Concentrix becomes an IBM preferred business partner under a multi-year agreement. Once the transaction is complete, Concentrix will have approximately 45,000 employees servicing over 300 clients in over 40 languages through over 50 delivery centers across the world.
“The new CRM BPO business will leverage the combined deep expertise, scale, process innovation and investments in high value industry platforms and assets to provide the customer experience and service innovation you have come to expect from IBM,” said Lori Steele, general manager of IBM Global Process Services.
Synnex, which is based in Fremont, California and provides services in IT distribution, supply chain management, contract assembly and business process outsourcing, said its revenue for the quarter that ended on August 31 would be at the high end of its previous forecast of $2.65 billion to $2.75 billion.