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SYNNEX To Acquire IBM's Customer Care Services Business

|Includes:IBM, SYNNEX Corporation (SNX)

Originally published at www.seclive.com

Filing in Focus: SYNNEX 8-K, September 10, 2013

SYNNEX Corporation (NYSE:SNX) and International Business Machines (NYSE:IBM) announced that IBM's customer care business will be acquired by SYNNEX in a deal valued at $505M. The result of the acquisition will end with Concentrix, a wholly-owned subsidiary of SYNNEX, combining business with the newly acquired IBM customer care business. The $505M transaction involves $430M in cash and $75M in SYNNEX stock and is expected to close in the next several months. SYNNEX predicts it will add $120M in earnings during the first 12 months after the transaction closes. SYNNEX President and CEO Kevin Murai remarked that the acquisition will propel Concentrix to the top 10 customer relationship management and business process outsourcing companies in the world. The company now expects revenue on the high end of its previously stated guidance of $2.65B to $2.75B.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: SNX, IBM