Why Concentrix (CNXC) Is Buying ServiceSource (SREV) For $131 Million In Cash

By Amit Chowdhry ● May 9, 2022
  • Concentrix Corporation (Nasdaq: CNXC) announced that it has reached a definitive agreement to acquire ServiceSource International, Inc. (NASDAQ: SREV) for $131 million. These are the details.

Concentrix Corporation (Nasdaq: CNXC) announced that it has reached a definitive agreement to acquire ServiceSource International, Inc. (NASDAQ: SREV), a global market leader in B2B digital sales, for $1.50 per share in an all-cash deal valued at about $131 million, inclusive of ServiceSource’s net cash.

ServiceSource is known as a global outsourced go-to-market services provider, delivering B2B digital sales and customer success solutions for many of the most innovative technology and new economy brands in the world. And the acquisition of ServiceSource will complement Concentrix’ offerings in a high-value, growing sector of the business, servicing strong pent-up client demand. The deal is expected to be accretive to growth and profitability after synergies.

This acquisition marks another milestone for Concentrix, supporting its growth strategy of investing in capabilities that transform and deliver epic customer experiences for the world’s best brands.

Following the closing of the deal, Concentrix will welcome ServiceSource’s expert team who will continue to deliver revenue generation services powered by data insights and methodologies with the benefit of the much larger Concentrix footprint and the opportunity to deliver to Concentrix clients.

Deal Details

– Expected contribution with synergies of approximately $230 million of revenue and $38 million of adjusted EBITDA in year one, the first 12 months following the acquisition

– Transaction value of approximately $131 million, inclusive of approximately $20 million of ServiceSource’s net cash as of March 31, 2022, which implies an EV/EBITDA multiple of approximately 3.5x based on expected adjusted EBITDA in year one

– Expected accretion to Concentrix’ revenue growth rate, EBITDA margin and non-GAAP diluted earnings per common share in year one

– Expected one-time costs related to the transaction of approximately $44 million, which includes approximately $14 million related to ServiceSource’s unvested equity awards that will be assumed by Concentrix

– Financed primarily through cash on the Concentrix balance sheet, as well as capacity under Concentrix’ existing revolving credit facility

– The transaction is expected to close in the second half of fiscal year 2022, subject to customary closing conditions, including approval by ServiceSource’s shareholders and regulatory requirements. And Edenbrook Capital, LLC and Archon Capital Management LLC, which collectively owned approximately 31% of ServiceSource’s shares as of May 6, 2022, have agreed to vote their shares in favor of the transaction.


“We continue to be committed to Reimagining Everything CX for our clients and delivering strong returns to our shareholders through our investments. We’re seeing significant opportunities for growth in our B2B sales business today and ServiceSource’s complementary capabilities and footprint in this space, combined with our leading portfolio of CX offerings, will enable us to quickly and successfully scale to meet demand with existing and new clients.”

– Chris Caldwell, President and CEO of Concentrix

“We are incredibly excited to have ServiceSource join the Concentrix team. This transaction will enable us to scale faster and for our clients to grow further with Concentrix’ global footprint while offering them more services. Through the process we saw clear opportunities for growth as both companies place a similar focus on long-term client relationships.” 

– Gary Moore, Chairman and CEO of ServiceSource