Tags: IBM | customer-service | business | Synnex

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

Tuesday, 10 September 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.

© Copyright 2020 Bloomberg News. All rights reserved.


   
1Like our page
2Share
Companies
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...
IBM,customer-service,business,Synnex
154
2013-47-10
Tuesday, 10 September 2013 05:47 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved