Synnex Corp of US to buy BPO firm Minacs for $420 mn

US-based Synnex Corporation will acquire BPO firm Minacs for $420 million, a move that will help the group strengthen presence in the automotive vertical.

Synnex will acquire Minacs and integrate it into its Concentrix business segment, and the purchase price is approximately $420 million, subject to closing adjustments, it said in a statement.

Concentrix is a part of Synnex Corporation that operates in 26 countries and was founded in 1980. It is a Fortune 500 corporation.

"This transaction is intended to strengthen domain expertise in Concentrix' automotive industry vertical and accelerate marketing optimisation and IoT solutions with Minacs' proprietary technology," the statement said.

 The deal adds approximately $400 million of revenue, $0.53 per share non-GAAP earnings as well as key clients across strategic verticals, it added.

Anil Bhalla, chief executive of Minacs, will stay with the combined company and join Concentrix' senior executive staff. Minacs, which currently has 21,000 employees across 35 centres worldwide, was acquired by CX Partners and Capital Square Partners from Aditya Birla Nuvo for $260 million in 2014.

"This strategic investment is expected to create even greater scale and a more compelling value proposition for our clients and shareholders. This transaction is also in line with our stated goals of margin expansion and diversification of our revenue," Synnex Corp chief executive and president Kevin Murai said.

The transaction is expected to close in late Q3 2016, subject to meeting regulatory requirements and customary closing conditions.

Until the transaction is completed, the companies will continue to operate independently.

It offers services to sectors like manufacturing, retail, telecom, technology, media and entertainment, banking, insurance, healthcare and public sectors.

Concentrix had acquired IBM Daksh (IBM's customer care business) in 2013 for USD 505 million. It has now operations across 25 countries with about 90 delivery centres.

It has more than 70,000 employees servicing more than 400 clients in over 40 languages.