|By Business Wire||
|September 10, 2013 04:06 PM EDT||
SYNNEX Corporation (NYSE: SNX), a leading business process services company, announced today in a separate press release issued jointly by SYNNEX and IBM (NYSE: IBM), that SYNNEX will acquire IBM’s worldwide customer care services business. The acquisition will be combined with Concentrix, a wholly-owned subsidiary of SYNNEX and a recognized leader in providing platforms, people and services to support high-value interactions at every stage of the customer lifecycle.
Pursuant to the asset purchase agreement, SYNNEX will pay a purchase price of $505 million, consisting of approximately $430 million in cash and $75 million in SYNNEX common stock. The transaction is expected to add an estimated $120 million in earnings before interest, taxes, depreciation and amortization (EBITDA) and approximately $0.55 in fully diluted earnings per share (EPS) excluding one-time charges and integration costs in the first 12 months post the closing of the transaction. The $405 million purchase price premium includes an estimated 40-50% in intangible assets which will be amortized over two to ten years.
As client requirements for BPO have shifted towards high value business outcomes, insights, and alternative delivery models, this transaction accelerates Concentrix’ geographic and industry reach with combined deep expertise, scale, process innovation and continued investments in high value industry platforms.
“This acquisition will make Concentrix a global Top 10 player in a growing market,” stated Kevin Murai, President and CEO of SYNNEX Corporation. “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.”
“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, IBM Global Process Services. “The pace of change in customer care requires constant innovation. This acquisition by SYNNEX further enhances our mutual commitment to client satisfaction through one of the world’s top customer experience BPO providers. Clients can invest with confidence in the proven abilities of these two leaders to deliver the best customer care solutions.”
“I am thrilled with the talent that will be coming over to Concentrix,” said Chris Caldwell, President of Concentrix Corporation. “We have long been committed to delivering high quality, innovative CRM BPO services and this acquisition will significantly extend our portfolio and our delivery capabilities.” Caldwell continued, “This is an important step in our continued growth by providing a unique aggregation of world-class customer engagement capabilities to our clients that we could only have acquired from IBM.”
SYNNEX will enter into a multi-year agreement with IBM in which Concentrix will become an IBM preferred business partner for global customer care BPO outsourcing services, providing an extended ecosystem and delivery engine for Concentrix’ and IBM’s extended partners and solution providers.
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 on six continents.
The transaction is expected to initially close in the coming months, subject to the satisfaction of regulatory requirements and customary closing conditions.
Until the transaction is completed, the companies will continue to operate independently.
Additionally, subject to SYNNEX’ completion of its normal quarterly close and reporting process, revenues for the third quarter ended August 31st are now estimated toward the high end of the prior guidance range of $2.65-$2.75 billion. As announced on September 6, 2013, the Company will report its Q3 2013 earnings results and hold a conference call on September 25th.
Analyst/Investor Conference Call
An analyst/investor conference call will be held to discuss the acquisition at 2:00 p.m. PT and will be hosted by Kevin Murai, President and Chief Executive Officer; Chris Caldwell, President, Concentrix Corporation, Dennis Polk, Chief Operating Officer; and Marshall Witt, Chief Financial Officer.
The conference call will be webcast at http://ir.synnex.com and will be available via telephone by dialing (888) 469-3219 in North America or (630) 395-0205 outside of North America. The passcode code for the call is “SNX.”
A live webcast and replay of the investor call will be available to the general public at http://ir.synnex.com. The replay of the webcast will be available at http://ir.synnex.com approximately one hour after the conference call has concluded.
SYNNEX Corporation (NYSE: SNX), a Fortune 500 corporation, is a leading business process services company, servicing resellers, retailers and original equipment manufacturers in multiple regions around the world. The Company provides services in IT distribution, supply chain management, contract assembly and business process outsourcing. Founded in 1980, SYNNEX employs approximately 12,500 full-time and part-time associates worldwide. Additional information about SYNNEX may be found online at www.synnex.com.
Concentrix Corporation is the global business services division of SYNNEX Corporation with award-winning expertise in providing our clients with platforms and services to enable their customer strategy. From locations in the Philippines, China, Costa Rica, Nicaragua, Canada, the United States, United Kingdom, Hungary, India and Japan, our more than 8,000 employees support millions of transactions in multiple languages and countries worldwide. Concentrix Corporation is a wholly-owned subsidiary of SYNNEX Corporation (NYSE:SNX), a Fortune 500 company. For more information, please visit www.concentrix.com.
Safe Harbor Statement
Except for the historical information contained herein, the matters set forth in this press release, including the anticipated benefits for SYNNEX of the acquisition of IBM’s worldwide customer care services business, including future financial and operating results, value to SYNNEX’ customers and stockholders, SYNNEX’ plans, objectives, expectations and intentions and the timing of the closing, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the risk that the transaction will not close as anticipated or at all, difficulties in the integration of acquired businesses, the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, or that the transaction will not be accretive to SYNNEX’ operating results, disruption from the transaction making it more difficult to maintain relationships with customers or employees, and competition, third-party relationships and revenues, and the risks detailed in SYNNEX’ Annual Report on Form 10-K for the year ended November 30, 2012, and Quarterly Report on Form 10-Q for the quarter ended May 31, 2013, as filed with the Securities and Exchange Commission, and in other reports filed with the SEC by SYNNEX from time to time. These forward-looking statements speak only as of the date hereof. SYNNEX disclaims any obligation to update these forward-looking statements.
Copyright 2013 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Aug. 25, 2016 07:15 AM EDT Reads: 1,858
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Aug. 25, 2016 06:30 AM EDT Reads: 1,816
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Aug. 25, 2016 06:00 AM EDT Reads: 1,415
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Aug. 25, 2016 03:30 AM EDT Reads: 2,116
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 25, 2016 02:30 AM EDT Reads: 2,144
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Aug. 25, 2016 02:15 AM EDT Reads: 478
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 25, 2016 02:00 AM EDT Reads: 1,783
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Aug. 25, 2016 02:00 AM EDT Reads: 1,897
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 25, 2016 01:15 AM EDT Reads: 1,608
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Aug. 25, 2016 01:00 AM EDT Reads: 1,977
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 25, 2016 12:45 AM EDT Reads: 1,905
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Aug. 25, 2016 12:30 AM EDT Reads: 2,077
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 25, 2016 12:00 AM EDT Reads: 2,977
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Aug. 24, 2016 10:30 PM EDT Reads: 1,461
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Aug. 24, 2016 10:30 PM EDT Reads: 2,015