Synnex buys IBM's customer care BPO services business for $505 million
(Reuters) - Hardware distributor Synnex Corp (SNX.N) will acquire IBM Corp's (IBM.N) 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 amortization 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 August 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.
Fremont, California-based Synnex's shares closed at $47.97 while IBM closed at $186.6 on the New York Stock Exchange on Tuesday.
(Reporting By Aurindom Mukherjee in Bangalore; Editing by Sriraj Kalluvila)