News : SYNNEX Announces Plan to Separate into Two Publicly Traded Companies
Fremont, CA, USA, Jan, 2020 -- SYNNEX Corporation (NYSE: SNX) announced its plan to separate into two publicly traded companies: comprising of SYNNEX Technology Solutions, an IT distribution, services and integrated solutions company, and Concentrix, a 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."
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.
Posted by Veronica Silva Cusi, news correspondent
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About Synnex Corporation:
Synnex Corporation, a Fortune 500 company founded in 1980 by Robert T. Huang based in Fremont, California, is an information technology supply chain services company offering services to original equipment manufacturers, software publishers and reseller customers. The president and CEO, as of November 2008, was Kevin M. Murai.
Concentrix, a wholly-owned subsidiary of SYNNEX Corporation (NYSE: SNX), is a technology-enabled global business services company specializing in customer engagement and improving business performance for some of the world’s best brands. Every day, from more than 40 countries and across 6 continents, our staff delivers next generation customer experience and helps companies better connect with their customers. We create better business outcomes and differentiate our clients through technology, design, data, process, and people. Concentrix provides services to clients in ten industry verticals: automotive; banking and financial services; insurance; healthcare; technology; consumer electronics; media and communications; retail and e-commerce; travel and transportation; energy and public-sector. We are Different by Design.
Published: Monday, January 13, 2020
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