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Sykes Enterprises Soars on Deal to Be Bought by Sitel Group

Sitel Group will take fellow customer experience company Sykes private in an all-cash deal worth about $2.2 billion. Sykes recently traded at $53.48, up 30%.
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Sykes Enterprises  (SYKE) - Get Report shares soared Friday after the company announced that fellow customer experience company Sitel Group is acquiring it and taking it private in a $2.2-billion cash deal.

Sykes recently traded at $53.48, up 29.90%, on Friday morning. 

Following the proposed transaction, the combined company will employ 155,00 workers in 39 countries, serving more than 600 clients. The companies expect combined revenue of more than $4 billion this year.

“By joining forces with such a healthy, profitable and financially solid U.S. brand that also has a stellar reputation, we will further enhance our global reach," said Laurent Uberti, chief executive of Sitel Group, in a statement.

The transaction is expected to be completed in the second half of 2021. Upon the closing of the deal, Sykes will cease trading on Nasdaq.

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In other merger news, a knowledgeable source told Dealreporter Thursday that the European Commission hasn’t raised objections to Advanced Micro Devices’ AMD proposed $35-billion takeover of fellow chipmaker Xilinx  (XLNX) - Get Report.

The person said the EC hasn’t deployed a state-of-play meeting in its Phase I investigation of the transaction.

The two companies said in April that their shareholders had both approved the deal. Under the terms, AMD would pay 1.7234 shares for each Xilinx share.

Earlier this week, The Justice Department filed an antitrust lawsuit challenging Aon's  (AON) - Get Report proposed acquisition of Willis Towers Watson  (WLTW) - Get Report.

The regulators contend that the deal to create the world’s largest insurance brokerage is anticompetitive. They say the tie-up would lead to higher prices and reduced innovation.