decor decor
"There are no secrets to success. It is the result of preparation, hard work, and learning from failure"

-Colin Powell

SYNNEX To Acquire Minacs

Financial Information
  • Enterprise Value                                        $420 million
  • EV/Revenue                                               ≈1.05x
  • EPS (non-GAAP)                                       $0.53
  • EBITDA                                                      ≈$35 – 40 million
Transaction Facts
  • SYNNEX Corporation (NYSE: SNX) announced Monday that it will acquire Minacs, a leading global outsourcing business solutions company owned by CX Partners and Capital Square Partners.
  • Minacs will be integrated with Concentrix, a wholly owned subsidiary of SYNNEX.
  • Concentrix currently operates across 25 countries, with approximately 90 delivery centers and more than 70,000 employees. This acquisition will provide Concentrix with increased scale, by gaining access to Minacs’ team of approximately 21,000 experts and 35 centers worldwide.
  • The transaction, which is expected to close in late Q3 2016, will add approximately $400 million of revenue and $0.53 per share non-GAAP earnings.
  • SYNNEX closed today up 2.87%, compared to the S&P 500 which was up 0.34%. Trading volume for SYNNEX was up almost 70%.

M&A As a Source of Growth and Diversification

  • Building Through Buying: SYNNEX has been making efforts to differentiate itself from its competitors by diversifying beyond traditional distribution and expanding its portfolio of higher margin services. Key in this diversification effort has been SYNNEX’s Concentrix division, which has grown through six acquisitions.
  • Good for the Goose and Gander: The largest of these transactions was SYNNEX’s 2014 acquisition of IBM’s customer care business process outsourcing (BPO) services business for $505 million. That deal benefitted both participants: IBM was able to divest what was for it a low margin segment, and SYNNEX diversified its offerings while Concentrix became a top-10 provider in the growing CRM BPO market.
  • Strengthening Domain Expertise: Minacs specifically offers SYNNEX the opportunity to build its domain expertise in the automotive industry vertical and leverage Minacs’ proprietary technology in the Marketing Optimization and IoT solutions space.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

13 May 2021

NWN Corp. Acquires Carousel Industries

Financial Information ($USD) Not Disclosed Transaction Details NWN Corporation, a leading Cloud Communications Service Provider (CCSP), announced yesterday that it will acquire fellow solutions provider Carousel Industries. Financial terms of the deal were not disclosed. New State Capital Partners, majority stakeholder of NWN since 2015, is backing the transaction which will form a combined company...

13 May 2021

Softchoice Files for IPO

Announcement Details Softchoice Corporation, a leading technology solutions provider in North America, announced yesterday that it has filed a preliminary prospectus for an initial public offering. Softchoice’s common shares will be traded on the Toronto Stock Exchange, although the number of shares and price have not yet been disclosed. Before Toronto-based Softchoice was taken private in...

15 Apr 2021

KKR to Acquire Ensono in $1.7 Billion Deal

Financial Information ($USD) Enterprise Value:    $1.7 Billion Transaction Details Global investment firm KKR & Co, Inc. (NYSE: KKR) is acquiring leading hybrid IT services provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners. While financials have not been disclosed, the transaction is valued at $1.7 billion inclusive of debt, according to Reuters....