IBM to sell its Customer Care business to Synnex Corp. for $ 505 million

IBM (NYSE: IBM) and SYNNEX (NYSE: SNX) Corporation have announced a definitive agreement in which SYNNEX will acquire IBM’s worldwide customer care business process outsourcing services business for $505 million, consisting of approximately $430 million in cash and $75 million in stock. The acquisition will be branded and fully integrated with Concentrix, a wholly owned subsidiary of SYNNEX. 

As part of the transaction, SYNNEX will enter into a multi-year agreement with IBM, and Concentrix will become an IBM strategic business partner for global customer care business process outsourcing services. 

Social, Mobile, Big Data and Cloud technologies are quickly and profoundly transforming customer care, enabling companies to take a holistic view of customers across traditional and new channels.  Through its investments in a broad software portfolio, cloud technology, consulting and advanced analytics, IBM is supporting global clients as they navigate through this customer experience transformation.   

IBM is investing in innovative solutions in the business process outsourcing services market and will continue to focus on, and invest in, strategic areas of its Global Process Services portfolio including: finance and administration, procurement and supply chain management, human resources and Smarter Workforce, and mortgage origination and servicing.  Recent IBM major investments include acquisitions such as Kenexa for a Smarter Workforce and Emptoris for supply chain management, enabling IBM to deliver smarter analytics-based solutions to IBM clients. 

“We are very excited to bring together these two great teams, each recognized by their clients as leaders in providing outstanding and innovative solutions,” said Kevin Murai, President & CEO, SYNNEX Corporation. “This acquisition will significantly extend our portfolio of offerings and delivery capabilities that will make Concentrix a global Top 10 player in this growing market.” 

Concentrix is a recognized leader in providing platforms, people and services to support high-value interactions at every stage of the customer lifecycle.  Through the acquisition of IBM’s customer care business process outsourcing services business, Concentrix will provide customer care services for clients in more than 12 industries.  Concentrix will significantly expand its global footprint across six continents to approximately 45,000 staff and 50 plus delivery centers. 

Source: IBM

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