SYNNEX Corp. (SNX) to Acquire Minacs in $420M Deal

Highlights:

• Adds approximately $400M of revenue and $0.53 per share non-GAAP earnings
• Adds key clients across strategic verticals
• Expands Concentrix into Internet of Things (IoT) and Marketing Optimization Services

SYNNEX Corporation (NYSE: SNX), and Minacs announced a definitive agreement in which SYNNEX will acquire Minacs and integrate it into its Concentrix business segment. The purchase price is approximately $420 million subject to closing adjustments.

This transaction is intended to strengthen domain expertise in Concentrix' automotive industry vertical and accelerate Marketing Optimization and IoT solutions with Minacs' proprietary technology. The transaction also provides Concentrix more scale and reach to further serve its client base. As a result, Concentrix is expected to strengthen its competitive advantages in the marketplace.

"We believe this acquisition will enhance Concentrix' position as global leader in business services," stated Kevin Murai, CEO and President of SYNNEX Corp. "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."

"Minacs has been able to establish itself as a high value unique player in Business Services. Their investments in IoT and Marketing Optimization stand out as solutions with growing market demand, which we believe we will be able to leverage across our combined client base," said Chris Caldwell, President of Concentrix. "This acquisition is intended to increase our speed to market of these solutions and provide us new opportunities for expansion."

Anil Bhalla, CEO of Minacs, will stay with the combined company and join Concentrix' senior executive staff. "I am confident that the combination of our capabilities will present an even more compelling value proposition to the marketplace," Bhalla said. "Across industries, clients can expect our shared vision and strategic scale to help them solve bigger, more complex business challenges."

It is anticipated that the transaction will close in late Q3 2016, subject to the satisfaction of regulatory requirements and customary closing conditions. Until the transaction is completed, the companies will continue to operate independently.

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• Meta earnings, IBM to acquire HashiCorp, U.S. GDP ahead - what's moving markets
• IBM (IBM) to Acquire HashiCorp (HCP) for $35/sh Cash or $6.4B