IBM divests customer care business to Synnex

Summary:IBM sheds a bevy of call centers as Synnex buys Big Blue's customer care unit for $505 million.

Synnex, a business process services company, will acquire IBM's customer care services business for $505 million. IBM's customer care business will be combined with Synnex subsidiary Concentrix.

Under the terms of the deal, Synnex will pay $430 million in cash and $75 million in stock. Synnex said the IBM business will add about 55 cents a share in earnings excluding charges and integration costs a year after the deal closes.

synnex

IBM has been retooling to focus on higher margin businesses and divesting call centers is part of that strategy. 

For Concentrix, the IBM deal instantly bulks up its business processing outsourcing business. As part of the acquisition, Concentrix becomes an IBM preferred business partner under a multi-year agreement.

When the deal closes, Concentrix will have 45,000 employees, 300 clients and 50 delivery centers around the world.

Topics: IBM

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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