Concentrix Corp (Nasdaq: CNXC) will buy Paris-based consulting and outsourcing firm Webhelp in a deal worth $4.8 billion, the business services provider said late Wednesday, to expand outside of North America and add customers in fast-growing markets.
Webhelp specializes in sales, marketing and payment services in Europe, Latin America and Africa, and will bring about 1,000 new clients, the company said in a statement.
The combined company is expected to have about $9.8 billion in revenue this year, and will be led by Concentrix CEO Chris Caldwell.
"The combination of these two companies allows us even more access to the expanded $550 billion market in which we compete," Caldwell told Reuters in a conference call.
Webhelp will receive 14.9 million Concentrix shares, 500 million euros ($542 million) in cash and a payment of 700 million euros payable over two years, the company said. Webhelp's target net debt of around €1.55 billion will also be refinanced when the transaction closes.
Concentrix shareholders will own about 78% of the combined company and Webhelp shareholders the remainder, after the deal closes, which is expected by the end of the year.
The company expects earnings of $75 million in the first full year after closing, and the deal is in addition to adjusted earnings per share at the end of that period.
