Synnex, a US based Fortune 500 corporation, has come to a definitive agreement under which it will acquire Bangalore based Minacs, a leading outsourcing business solutions in the field of manufacturing, retail, telecom, technology, media and entertainment, banking, insurance, healthcare, and public sectors.
The value of the deal is estimated to close at $420 million after which Synnex will integrate Minacs into its Concentrix business segment. It comes as an important step directed towards business process management space (BPM) and aims to improve higher end services and capabilities like analytics.
Founded in 1980, Synnex distributes a broad range of information technology systems and products, and also provides systems design and integration solutions across the globe.
Utilizing Minacs’ proprietary technology, the deal intends to strengthen domain expertise in Concentrix’ automotive industry vertical and accelerate Marketing Optimization and IoT solutions. Additionally, it will further increase the reach and add scalability to Concentrix’s client base hence attaining competitive edge over others in the market.
With a large delivery footprint in India, the Philippines, Europe, Asia/Pacific, North America and South America, Concentrix has an expertise in 10 industries, offering enhanced capabilities in advanced analytics, enabling technologies and non-voice services to name a few.
In an official statement by the company, Kevin Murai, CEO and President of Synnex Corp said “We believe this acquisition will enhance Concentrix’ position as global leader in business services”. He further added that this strategic investment is expected to create even greater scale and a more compelling value proposition for their clients and shareholders and that the transaction was in line with their stated goals of margin expansion and diversification of their revenue.
Chris Caldwell, President of Concentrix said “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”. He added that the acquisition is intended to increase their speed to market their solutions and garner new opportunities for expansion.
Another interesting development in the deal is that Anil Bhalla, CEO of Minacs, would stay with the combined company and join Concentrix’ senior executive staff. Commenting on his new role he said “I am confident that the combination of our capabilities will present an even more compelling value proposition to the marketplace.”
The deal which is expected to close in late Q3 2016, is anticipated to bring far reaching vision and strategies to its clients and solve bigger and more complex business challenges.