Synnex-Mitac’s US unit, IBM reach deal

By Kevin Chen  /  Staff reporter

Thu, Sep 12, 2013 - Page 13

Synnex Technology International Corp (聯強) and Mitac International Corp (神達) yesterday said their US reinvestment unit had agreed upon a strategic partnership in customer care services with IBM Corp for US$505 million.

In a filing to the Taiwan Stock Exchange, the companies said that the NYSE-listed Synnex Corp had reached an agreement with IBM through a cash-and-stock deal, which will allow the US subsidiary to expand its business portfolio beyond electronics distribution.

Synnex will buy IBM’s customer care business process outsourcing services segment with US$430 million in cash and US$75 million worth of Synnex shares.

After integrating IBM’s customer care business with Synnex’s 100 percent owned Concentrix subsidiary, the latter will have 45,000 employees in 50 centers worldwide and provide services for more than 300 key clients, the companies said.

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

The transaction is expected to close in the coming months. Once it does, IBM will have an equity interest in Synnex, they said.

The deal is expected to contribute US$120 million in earnings before income tax, depreciation and amortization to Synnex in the first year, or earnings per share of US$0.55, they said.