Concentrix to buy outsourcing firm Webhelp
CALIFORNIA, UNITED STATES — Concentrix Corporation, a customer experience (CX) service provider, announced it is combining with outsourcing and consultancy firm Webhelp in a deal valued at US$4.8 billion.
The transaction, slated to close at the end of the year, aims to expand Concentrix’s client footprint. Paris-based Webhelp specializes in CX, sales, marketing, and payment services with a strong footprint in Europe, Latin America, and Africa.
Webhelp’s approximately 1,000 clients are mostly based outside of North America. With this transaction, Webhelp adds over 25 new countries to Concentrix’s global footprint, bringing the total to 70 countries for the combined company.
Concentrix President and Chief Executive Officer (CEO) Chris Caldwell will lead the combined organization.
“As we embark on this new journey together, we will have the most impressive toolkit of high-value services and digital capabilities, and a complementary portfolio of approximately 2,000 amazing clients with a diversified and robust revenue stream. With our combined strengths, we will be uniquely positioned to redefine the industry and design, build and run the future of CX,” said Caldwell.
According to Concentrix, it will acquire 100% of the shares of Webhelp. Shareholders of Webhelp will receive 14.9 million shares of Concentrix, €500 million (US$545 million) of cash proceeds, and a €700 million (US$763.5 million) note payable in two years.
According to Reuters, Concentrix posted an over 20% slide in first-quarter net income to US$87.9 million, while its revenue increased 6.5% to US$1.64 billion.
The company is looking at cost synergy benefits of US$75 million in the first full year after closing.
