Narayan AmmachchiSynnex Corporation has decided to spin off Concentrix and list it separately on the US stock exchange after merging it with Convergys.
The demerger, analysts say, allows the American technology giant to focus on its core IT services and distribution business.
Synnex acquired Concentrix in 2016 and Convergys in 2018, gaining an unprecedented foothold in the IT-enabled services industry across the world.
“The spin-off will provide each company with a sharper strategic and managerial focus,” said Synnex CEO Dennis Polk in a statement. Polk will limit himself to Synnex following the demerger, with the company’s current president Chris Caldwell taking charge of Concentrix.
Even after that spin-off, Synnex, whose annual earnings equals to US$19 billion, will remain one among the top three IT distributors in the Americas and Japan.
With US$4.7 billion in annual revenue, Concentrix will continue as a top-two global provider of technology-infused CX solutions.
Founded in 1980, the company distributes a broad range of information technology systems and products and also provides systems design and integration solutions.
Rochester, New York-based Concentrix offers call center, database analysis, and print-on-demand services, with reports suggesting that counts world’s 125 large companies among its clients.
Both Concentrix and Convergys have extensive operations in Latin America.
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