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.
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.