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Synnex is splitting in two
Posted on Friday, 10 January 2020 14:27
Information technology (IT) supply chain services provider Synnex has reached an agreement to separate into two publicly-listed companies, one comprising the technology solutions arm and the other being Concentrix, a global customer experience group.
Completion of the split is expected during the second half of 2020, with each business to be owned by the current shareholders of the main group.
The transaction remains subject to final approval from the board, the receipt of favourable opinion in relation to the tax-free nature of the deal and the effectiveness for the Form-10 filing with the US Securities and Exchange Commission.
Synnex Technology Solutions will continue to be a top three US and Japanese IT distribution company, providing a comprehensive range of distribution, logistics and integration services for the technology industry, with USD 19.00 billion in annual revenue.
As a result of the separation, the company will be able to focus on further executing its strategic initiatives and invest in capabilities that will continue to grow its market share while being led by current chief executive Dennis Polk.
On the other hand, Concentrix is billed as a top two global provider of technology-infused customer experience services, centred on helping clients exchange brands for its consumers and providing end-to-end capabilities.
The group supports over 125 Global Fortune 2000 clients and more than 50 disruptive, high-growth businesses across 275+ locations, with annual revenues of USD 4.70 billion.
As a stand-alone company, Concentrix will be better positioned to drive sustainable and profitable growth, with president Chris Caldwell to become the head of the business following completion.
Shares in Synnex, which is currently listed on the New York Stock Exchange, gained 8.1 per cent in after-market trading to USD 139.75 at 17:10, giving the group a market capitalisation of USD 6.58 billion.
In the year to 30th November 2019, the company posted revenue of USD 23.76 billion, up 20.2 per cent from USD 19.77 billion in the previous 12 months.
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