Synnex Announces Plan To Split It Into Two

(RTTNews) - Synnex Corp. (SNX) Thursday announced plans to separate into two publicly traded companies-- Synnex Technology Solutions, a IT distribution, services and integrated solutions company, and Concentrix, a CX solutions company. Shares of Synnex gained nearly 8% after the news.

Immediately following the transaction, Synnex shareholders will own shares of both Synnex and Concentrix. The transaction is expected to be completed in the second half of 2020.

Synnex President and CEO Dennis Polk will continue to hold this position and lead Synnex following the separation. Chris Caldwell, President of Concentrix, will lead Concentrix as President and CEO, and will continue to oversee the business as a standalone company following the separation.

"Today, Synnex is taking affirmative steps to further drive shareholder value by announcing our plan to separate into two strong, independent, public companies," said Dennis Polk, Synnex President and CEO. "The spin-off will provide each company with sharper strategic and managerial focus and enable Synnex shareholders to own and value each business separately."

Chris Caldwell, President of Concentrix, added, "With Concentrix achieving its current scale and efficiency ahead of expectations, coupled with the market opportunities ahead of us, the appropriate time to separate is now. The separation of the two businesses will enhance each company's competitive position and accelerate significant value creation opportunities."