SYNNEX will acquire IBM's worldwide customer care business process outsourcing services business for $505 million. 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.
By partnering with Concentrix for customer care services and leveraging Concentrix's ongoing investments in this business, IBM and Concentrix will jointly deliver high-value interactions at every stage of the customer care lifecycle.
IBM is investing in 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.
SYNNEX said the transaction accelerates Concentrix' geographic and industry reach with combined deep expertise, scale, process innovation, and continued investments in high-value industry platforms.
"This acquisition will make Concentrix a global top 10 player in a growing market," said Kevin Murai, president and CEO of SYNNEX, in a statement. "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."
Once the transaction is complete, Concentrix will have approximately 45,000 employees servicing more than 300 clients in more than40 languages through more than 50 delivery centers on six continents. Until the transaction is completed, the companies will continue to operate independently.
"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, general manager of IBM Global Process Services, in a statement. "The pace of change in customer care requires constant innovation. This acquisition by SYNNEX further enhances our mutual commitment to client satisfaction through one of the world's top customer experience BPO providers. Clients can invest with confidence in the proven abilities of these two leaders to deliver the best customer care solutions.
Margaret Goldberg, IT services analyst at Ovum, calls the deal "big news for the CRM BPO market."
"The merging of IBM's CRM business with Synnex';s subsidiary Concentrix elevates the previously tier-two player into one of the top players in the industry, and we expect it to make quite a bit of noise given IBM';s history, capabilities, and client base that Concentrix is picking up," she said in an email.
"Given IBM's mature CRM offerings and fairly deep capabilities, the acquisition will allow Concentrix to capitalize on key trends in CRM outsourcing," she continued. "This transaction illustrates the continuous effort of CRM vendors to diversify, as the acquisition will help Concentrix increase the depth and breadth of its offering, including capitalizing on technology trends from mobility to cloud systems to analytics."