SYNNEX To Acquire IBM's Customer Care Services Business For $505 Mln

(RTTNews) - SYNNEX Corp. (SNX) Tuesday said it will acquire IBM's worldwide customer care services business for a total purchase price of $505 million. The acquisition was announced in a press release issued jointly by IBM (IBM).

"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, " said Kevin Murai, President and CEO of SYNNEX.

Pursuant to the asset purchase agreement, SYNNEX will pay $430 million in cash and $75 million in SYNNEX common stock. The $405 million purchase price premium includes an estimated 40 percent to 50 percent in intangible assets which will be amortized over two to ten years.

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.

"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, GM, IBM Global Process Services.

The transaction is expected to initially close in the coming months, subject to the satisfaction of regulatory requirements and customary closing conditions.