FREMONT, Calif., Jan. 9, 2020 /PRNewswire/ — SYNNEX Corporation (NYSE: SNX) today announced its plan to separate into two publicly traded companies: comprising of SYNNEX Technology Solutions, a leading IT distribution, services and integrated solutions company, and Concentrix, a leading global CX solutions company. Immediately following the transaction, SYNNEX shareholders will own shares of both SYNNEX and Concentrix.
“Today, SYNNEX is taking affirmative steps to further drive shareholder value by announcing our plan to separate into two strong, independent, public companies,” said Dennis Polk, SYNNEX President and CEO. “The spin-off will provide each company with sharper strategic and managerial focus and enable SYNNEX shareholders to own and value each business separately. We are very proud of our company and the returns we generated by investing in IT Distribution and CX Services over our nearly 40-year history. We are equally proud to have these two businesses reach a point where they are industry leaders and positioned well to be successful standalone public companies.”
Chris Caldwell, President of Concentrix, added, “With Concentrix achieving its current scale and efficiency ahead of expectations, coupled with the market opportunities ahead of us, the appropriate time to separate is now. The separation of the two businesses will enhance each company’s competitive position and accelerate significant value creation opportunities. I, along with the rest of the Concentrix team, are grateful for our time within the SYNNEX family and look forward to continuing the successful SYNNEX legacy.”
SYNNEX Technology Solutions
SYNNEX Technology Solutions, with approximately $19 billion in annual revenue, will continue as a top three Americas and Japan IT distribution company, providing a comprehensive range of distribution, logistics and integration services for the technology industry. With one of the industry’s most robust linecards and portfolio of services, SYNNEX is well positioned to further invest in capabilities and initiatives that will continue to grow its market share. Through this separation, SYNNEX will have the flexibility, focus and control to further execute its strategic initiatives.
Concentrix, with approximately $4.7 billion in annual revenue, will continue as a top two global provider of technology-infused CX solutions, centered on helping clients enhance brand experience for its end-customers and providing end-to-end capabilities that drive deep customer engagement. With a differentiated portfolio of solutions, Concentrix supports over 125 Global Fortune 2000 clients and over 50 disruptive, high-growth clients across 275+ global locations, delivering a consistent brand experience across all channels. As a stand-alone company, Concentrix will be better positioned to drive sustainable and profitable growth.
Both companies have strong, well-tenured leadership teams with significant industry experience, well suited to lead the two companies going forward in their distinct markets.
Dennis Polk, SYNNEX President and CEO, will continue to hold this position and lead SYNNEX following the separation.
Chris Caldwell, President of Concentrix, will lead Concentrix as President and CEO, and will continue to oversee the business as a standalone company following the separation.
Over the coming months, Concentrix will assemble its Board of Directors and announce the appointments closer to the expected date of separation.
The transaction is expected to be completed in the second half of 2020. The separation is intended to qualify as a tax-free transaction for federal income tax purposes for both SYNNEX Corporation and current SYNNEX shareholders. Immediately following the separation, SYNNEX shareholders will own shares of both SYNNEX Technology Solutions and Concentrix, at the same percentage owned of SYNNEX, prior to the transaction.
Completion of the separation will not require a shareholder vote but will be subject to customary closing conditions, including final approval of the SYNNEX Board of Directors, the receipt of favorable opinion with respect to the tax-free nature of the transaction, and the effectiveness of a Form-10 filing with the U.S. Securities and Exchange Commission.
SYNNEX will operate on a “business as usual” basis while details of the separation are being finalized. After the separation, SYNNEX and Concentrix are expected to be appropriately capitalized with ample liquidity to support ongoing investments and growth.