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

-Colin Powell

July 11,2016

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

24 Apr 2024

Celestica (NYSE: CLS) to Acquire NCS Global from Heritage Holding

Financial Information Enterprise Value: $36M (and a possible earnout payment should certain post-closing financial conditions be met) Transaction Details Celestica has entered into a definitive agreement to acquire NCS Global, a US-based IT infrastructure and asset management business. The transaction is expected to close in May 2023 or earlier, subject to satisfaction of customary closing...

02 Apr 2024

CD&R to Acquire Presidio from BC Partners

Financial Information Not Disclosed Transaction Details Clayton Dubilier & Rice (CD&R) and BC Partners announced on April 2, 2024, that they have entered into a definitive agreement under which CD&R will acquire a majority ownership of Presidio. Funds affiliated with BC Partners will retain minority ownership interest. The transaction is expected to close in the...

06 Feb 2024

NWN Carousel acquired by American Securities

Financial Information Revenue: Approx. $900 million Enterprise Value: N/A Transaction Details NWN Carousel announced a transition of ownership from New State Capital Partners to affiliates of American Securities. This transition represents the success of significant investment, organic growth, M&A execution, operational excellence and innovation under ownership of New State Capital Partners. NWN Carousel developed a...