Tags: IBM | customer-service | business | Synnex

IBM Sells Customer-Service Business to Synnex for $505 Million

Tuesday, 10 Sep 2013 05:47 PM

International Business Machines Corp., the world’s largest computer-services provider, agreed to sell its customer-care outsourcing business to Synnex Corp. for $505 million.

Synnex will pay $430 million in cash and $75 million in stock, giving IBM a stake in Synnex, the companies said in statements Tuesday. The unit had $1.3 billion in 2012 sales.

IBM is getting rid of businesses with lower profit margins to reach a goal of $20 a share in earnings by 2015. The company, based in Armonk, New York, said earlier this year that it would sell assets to make up for a $1 billion charge to cut jobs.

Synnex, based in Fremont, California, said the transaction will add 55 cents a year in earnings per share in the first 12 months after it closes the deal. Its shares jumped as much as 9.4 percent in late trading after closing at $47.97. IBM was little changed after closing at $186.60.

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International Business Machines Corp., the world's largest computer-services provider, agreed to sell its customer-care outsourcing business to Synnex Corp. for $505 million.Synnex will pay $430 million in cash and $75 million in stock, giving IBM a stake in Synnex, the...
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Tuesday, 10 Sep 2013 05:47 PM
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