Business
Concentrix Announces Acquisition of PK, a Leading Global CX Design Engineering Company
Brings strong portfolio of intellectual assets and advanced CX technologySignificantly enhances CX digital transformation capabilities at scaleStrengthens
About this update from Concentrix Corporation
[{"type":"text","content":"Brings strong portfolio of intellectual assets and advanced CX technologySignificantly enhances CX digital transformation capabilities at scaleStrengthens presence in high growth, $270B digital IT services marketEnhances financial profile through accretion to EPS and growth rate FREMONT, Calif., Nov. 22, 2021 (GLOBE NEWSWIRE) -- Concentrix Corporation (Nasdaq: CNXC), a leading global provider of customer experience (CX) services and technologies, today announced that they have reached a definitive agreement in which Concentrix would acquire PK, a leading global CX design engineering company. As part of the transaction, funds managed by Global Investment Firm Carlyle (NASDAQ: CG) will sell its majority stake in PK, after initially investing in the company in 2016. The transaction is expected to close in Concentrix’ first fiscal quarter of 2022, subject to regulatory requirements and other customary closing conditions. PK is a leading global CX digital design and engineering firm, partnering with the world’s best brands to create pioneering experiences that accelerate digital outcomes for their customers, partners, and staff. With over 5,000 staff across 20 cities in four countries, PK has been recognized and awarded worldwide for designing and engineering digital experiences at scale. This acquisition marks an evolutionary milestone for Concentrix, supporting the growth strategy of investing in digital transformation to deliver exceptional customer experiences. PK gives Concentrix the ability to scale digital capabilities faster while building excellence in key high growth areas of CX Design & Development, AI, Intelligent Automation and Customer Loyalty. With a complementary client base and similar vertical focus, PK provides attractive opportunities within core and adjacent markets. The combination of two leading providers uniquely brings together the best of digital CX solutions and services. Transaction Details: Investment of approximately $1.6 billionExpect PK to contribute approximately $530 million of revenue and $85 million of adjusted EBITDA in the first full year following the acquisition, reflecting 20% year-over-year growth for PKTransaction expected to be financed primarily through additional bank debt borrowings under amended credit facilityNet leverage expected to be 2.5x at close on a trailing twelve-month pro form...