Estimated Financial Impact of Acquisition to Consolidated SYNNEX Corporation Financials:
- Approximately $120 million of EBITDA weighted towards the latter part of the first 12 months following the initial close due to a higher cost structure in the near term as the business moves from IBM to Concentrix. The amount excludes one-time acquisition related expenses and restructuring charges.
- One-time acquisition-related expenses - primarily professional fees and transaction-related expenses -are estimated at $35-45 million for the fiscal year end November 30, 2014.
- Amortization expense is estimated to be $40 million for fiscal 2014.
- Depreciation expense is estimated to be $15 million for fiscal 2014.
- As part of the $505 million purchase price, SYNNEX has delivered approximately 1.27 million shares of SYNNEX common stock valued at $75 million to IBM.
- Interest expense related to the financing of the initial $355 million cash purchase price and working capital needs will approximate $8-10 million for the balance of fiscal year 2014. $75 million of the purchase price payment is deferred until subsequent closings are completed.
- Total revenues from the IBM CRM business will be dependent on the timing of successive closings, the timing of novation of customer contracts, and the fact that some contracts will be conducted under sub-contract from IBM. We expect, however, that successive closings and novation will occur within the next 12 months. Updated U.S. GAAP revenue projections from this transaction will be provided during the Company’s first quarter 2014 earnings release and in subsequent quarters.
- Excluding one-time acquisition related charges, the one month impact of the IBM CRM business will not be material to SYNNEX’ fiscal first quarter results for the period ended February 28, 2014.
- “About Concentrix” and recent news releases at http://www.concentrix.com/
- Acquisition-related news releases and presentation from the initial September 10, 2013 acquisition announce and November 27, 2013 financing announce at the SYNNEX Investor Relations Site at http://ir.synnex.com/
- Follow Concentrix and SYNNEX on Twitter, Facebook and LinkedIn from the “Social Communities” section of the SYNNEX Global Site at http://www.synnex.com/
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