Sept 10 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
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
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.
Fremont, California-based Synnex's shares closed at $47.97
while IBM closed at $186.6 on the New York Stock Exchange on