Synnex Buys IBM's Customer Care BPO Services Biz For $505 Mn

Hardware distributor Synnex Corp will acquire IBM Corp’s worldwide customer care business process outsourcing operations for $505 million.

Shares in Synnex, which said it expects third-quarter revenue at the high end of its forecast, rose 8.4 percent in after-market trade.

The acquisition is likely to add about $120 million to earnings before interest, taxes, depreciation and amortisation and about 55 cents in earnings per share, excluding one-time charges and integration costs, in the first year after closing, Synnex said in a statement.

The IBM operations will be combined with Concentrix, Synnex’s global business services division.

Synnex will pay IBM about $430 million in cash and $75 million in stock and also enter into a multi-year agreement, the companies said.

Synnex said its revenue for the quarter ended Aug. 31 would be at the high end of its prior forecast of $2.65 billion to $2.75 billion. Analysts on average were expecting revenue of $2.70 billion, according to Thomson Reuters I/B/E/S.