As per the terms of the agreement, the France-based company’s shareholders will be issued 14.9 million shares of Concentrix and €500m in cash
Concentrix, a US-based customer experience (CX) services and technologies provider, has agreed to acquire Webhelp in a deal worth about $4.8bn, including the latter’s net debt.
Webhelp is a France-based human experiences and shape business solutions developer.
As per the terms of the agreement, the French company’s shareholders will be issued 14.9 million shares of Concentrix as well as €500m in cash.
Webhelp will also receive a €700m note payable in two years with an interest rate of 2%.
Besides, if Concentrix’s share price rises to $170 per share within seven years from the closing of the transaction, then Webhelp will have the right to earn an additional 0.75 million shares of the former.
Furthermore, the firm’s targeted net debt of about €1.55bn is expected to be refinanced upon the closing of the transaction.
Belgium-based Groupe Bruxelles Lambert has been a majority stakeholder of Webhelp since 2019.
Following the closing of the deal, the publicly-listed Concentrix’ shareholders will own nearly 78% of the combined company and the remaining 22% will be held by Webhelp’s shareholders.
The combined company is expected to have a global footprint in more than 70 countries with Webhelp set to add more than 25 new countries to Concentrix.
Concentrix president and CEO Chris Caldwell said: “We are honoured and excited to join forces with Webhelp, a recognised and game-changing leader in Europe, Latin America, and Africa that shares our culture, values and fanatical focus on people and the success of our valued clients.
“As we embark on this new journey together, we will have the most impressive toolkit of high-value services and digital capabilities, and a complementary portfolio of approximately 2,000 amazing clients with a diversified and robust revenue stream.
“With our combined strengths, we will be uniquely positioned to redefine the industry and design, build and run the future of CX.”
The pro forma combined company is anticipated to generate around $9.8bn in revenue for the fiscal year 2023.
Webhelp co-founder and CEO Olivier Duha said: “Blending strengths of both incredible companies will allow us to keep clients at the heart by offering them the most complete range of solutions, while improving our attractiveness toward talent and investing in technology.”
Subject to approval of Concentrix’ shareholders and regulatory approvals along with customary conditions, the transaction is expected to be complete by the end of the year.