Concentrix Corp., the California-based business services company specializing in CX services and technologies, is set to acquire global CX design engineering firm PK in an investment deal valued at approximately $1.6 billion.
The deal will also see PK contributing $530 million of revenue and $85 million of adjusted EBITDA in the first full year after the acquisition, equivalent to a 20% year-over-year (YoY) growth for PK. As part of the agreement, global investment firm Carlyle will sell its majority stake in Oregon-headquartered PK after an investment of $300 million five years ago in 2016.
The acquisition, described by Concentrix as an “evolutionary milestone,” will support the company’s growth strategy of investing in digital transformation so that it can deliver on its promise of exceptional CX, the Concentrix press release notes. For its part, PK and its staff of more than 5,000 in 20 cities and four countries will enable Concentrix to scale digital capabilities faster and build growth in key areas, including CX design and development, artificial intelligence (AI), intelligent automation, and customer loyalty. Overall, the deal will combine a complementary client base and similar vertical focus, both companies have said.
Chris Caldwell, president and CEO of Concentrix, said the company was “incredibly excited” to be welcoming the PK team. Founded in 1983, Concentrix has brought eight companies on board since 2006, growing through multiple acquisitions over the years. “This acquisition adds immediate and meaningful breadth and scale to our CX digital capabilities,” he said. “It establishes a stronger presence in the complementary CX digital IT services market, while enhancing our ability to continue to increase our margins in high-value services.”
Dinesh Venugopal, CEO of PK, said joining Concentrix will allow his firm, known for designing and engineering experiences at scale, to continue helping clients “disrupt their market” on a larger scale. “Our vision has always been to drive digital innovation and transformation focused on the customer experience,” he remarked. “Concentrix shares this vision, and we are excited to join them as they mark another milestone in their ongoing story of growth.” The transaction, subject to regulatory approval, will be financed primarily through additional bank debt borrowings under an amended credit facility. The deal is expected to close during Concentrix’s 1Q 2022.
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Alex is responsible for writing about trends and changes that are impacting the customer experience market. He had served as Principal Editor at Village Intelligence, a Los Angeles-based consultancy on technology impacting healthcare and healthcare-related industries. Alex was also Associate Director for Content Management at Omdia and Informa Tech, where he produced white papers, executive summaries, market insights, blogs, and other key content assets. His areas of coverage spanned the sectors grouped under the technology vertical, including semiconductors, smart technologies, enterprise & IT, media, displays, mobile, power, healthcare, China research, industrial and IoT, automotive, and transformative technologies.
At IHS Markit, he was Managing Editor of the company’s flagship IHS Quarterly, covering aerospace & defense, economics & country risk, chemicals, oil & gas, and other IHS verticals. He was Principal Editor of analyst output at iSuppli Corp. and Managing Editor of Market Watch, a fortnightly newsletter highlighting significant analyst report findings for pitching to the media. He started his career in writing as an Editor-Reporter for The Associated Press.
