IBM has signed a deal with business process services provider Synnex to sell its global customer care business process outsourcing services (BPO) business for $505m.
Synnex will offer approximately $430m in cash and $75m in stock.
The acquired business generated revenue of $1.3bn last year, which is more than 1% of IBM’s overall revenue.
Following the acquisition, Synnex will integrate the acquired business with its global business services division Concentrix.
The acquisition is expected to expand Concentrix’s global footprint across six continents to approximately 45,000 staff and 50 plus delivery centres.
Synnex president and CEO Kevin Murai said: "This acquisition will significantly extend our portfolio of offerings and delivery capabilities that will make Concentrix a global Top 10 player in this growing market."
As part of the transaction, Concentrix will become an IBM strategic business partner for global customer care BPO services, under a multi-year agreement.
Lori Steele, general manager of global process services at IBM, said: "This partnership between IBM and Synnex will provide our clients with the innovation they have come to expect from IBM through our deep capabilities in advanced analytics, social business, cloud and smarter commerce, complemented by Concentrix’ flexible and adaptive global customer care delivery network."
The transaction, which is subject to regulatory approvals, is expected to close in the coming months.
