Tomahawk, WI 9/12/2013 (BasicsMedia) –  News reaching the stock markets indicates International Business Machines Corp. (NYSE:IBM) readiness to offload its customer care services to Synnex in a deal thought to be about $505million in cash and stock. This will considerably increase the information technology distributor’s portfolio. After the revelations Synnex shares jumped a high of 9.4% to trade at $52.50 while IBM shares were also up at $186.99. The acquisition will be fully integrated with Concentrix and owned by a subsidiary of Synnex.

The deal by Synnex entails paying up $430million worth in cash and $75million in stock for the customer care service. Synnex intends to integrate this new venture to its Concentrix Subsidiary. Synnex intends to use the acquisition of IBM customer service as a platform of providing customer care service to clients in more than 12 industries. Under the proposed agreement, Synnex and IBM will form a partnership in which Concentrix will become a partner for customer care business processes.

IBM had been making major developments by using Social Mobile and cloud technologies to boost its customer care services. IBM has also been supporting its huge global clientele as it continues with navigation in the customer experience transformation. Though the partnership IBM and Concentrix plan to develop an approach for delivering high value at every stage of customer care service Under the agreement Synnex intends to expand its global appeal to six continents and employing 45000 staff plus 50 delivery centers.

 IBM is currently investing in innovative solutions aimed at boosting and increasing its market share. Some of the global portfolios that IBM is highly investing in include finance and supply chain management. Some of the major investment acquisitions that IBM has undertaken in the recent past include the acquisition of Kenexa and Emptoris

Kevin Murai president and CEO of Synnex was quick to emphasize the need of the two companies working together to develop innovative and outstanding solutions by stating “We are very excited to bring together these two great teams each recognized by their clients as leaders in providing outstanding and innovative solutions”. Synnex intends to use the new acquisition to extend its offering and delivery capabilities.”

The move by IBM has been coming as over the past months it has been retooling to focus on businesses with higher margins making divesting of its call centers part of its long-term strategy. The companies will continue to operate independently until all the formalities of the deal are entirely completed and made official.  The deal will be finalized in a few months to come after the satisfaction of all the regulatory requirements and customary closing conditions

Despite the deal nearing its completion IBM was quick to emphasize that it is still committed to continue investing in business processes of outsourcing market services. This sentiments were clearly echoed by IBM  general manager Lori steele  by saying “the new partnership will provide our clients with the innovation they have come to expect from IBM through our deep capabilities in advanced analytics complemented by Concentrix’ flexible and adaptive global customer care delivery network.”

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