Synnex acquires Minacs BPO for $420 million

SYNNEX Corporation, US-based business process outsourcing firm, today announced that it has signed a definitive agreement to acquire BPO firm Minacs and integrate it into its Concentrix business segment. The purchase price is approximately $420 million subject to closing adjustments.

India focused private equity players CX Partners and Capital Square partners have exited from Minacs post this deal.

The PE player had acquired Minacs from the Aditya Birla Group for $260 million.

Synnex in a statement said that 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.”

The acquisition will add revenue of $400 million to Concentrix.

Chris Caldwell, President of Concentrix said, “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.