Hardware distributor Synnex Corp would acquire the global customer care business process outsourcing operations of IBM Corp. The deal was valued USD505 million.
Synnex shares increased 8.4% in after-market trading. The company's shares were expected to reach a third-quarter revenue at the high end of its forecast. The acquisition of the BPO operations from IBM would add around USD120 million to earnings before interest, taxes, depreciation and amortization (EBITDA). It would also add around USD.55 in earnings per share piece. This would exclude one-time charges and integration costs after the closing of trade in the first year, said Synnex in a statement.
The IBM operations would be combined with Synnex's global business services unit, Concentrix.
Synnex would pay IBM in a combination of cash in stock. The company would pay USD430 million in cash and USD75 million in stock. Synnex would also enter into a multi-year agreement, said the companies.
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