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SYNNEX Corp Announces Acquisition Of International Business Machines Corp's $1.2+ Billion CRM BPO Business-DJ


Tuesday, 10 Sep 2013 04:05pm EDT 

Dow Jones reported that SYNNEX Corporation, in a separate press release issued jointly by SYNNEX and International Business Machines Corp (NYSE: IBM), announced that SYNNEX will acquire IBM's worldwide customer care services business. The acquisition will be combined with Concentrix, a wholly-owned subsidiary of SYNNEX. Pursuant to the asset purchase agreement, SYNNEX will pay a purchase price of $505 million, consisting of approximately $430 million in cash and $75 million in SYNNEX common stock. The transaction is expected to add an estimated $120 million in earnings before interest, taxes, depreciation and amortization (EBITDA) and approximately $0.55 in fully diluted earnings per share (EPS) excluding one-time charges and integration costs in the first 12 months post the closing of the transaction. The $405 million purchase price premium includes an estimated 40-50% in intangible assets which will be amortized over two to ten years. The transaction is expected to initially close in the coming months, subject to the satisfaction of regulatory requirements and customary closing conditions. Until the transaction is completed, the companies will continue to operate independently. 

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