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India – CCI Approves Acquisition Of IBM’s CRM-BPO Business By Synnex.

24 March, 2014

 


On January 30, 2014, CCI approved the proposed acquisition of the business of customer relationship management business process outsourcing (‘CRM BPO’) of IBM Corporation (‘IBM’) by Synnex.

 
In India, the proposed combination would lead to acquisition of IBM Daksh Business Process Service Private Limited (‘IBM Daksh’) with certain assets, employees and customer contracts serviced by IBM India Private Limited (‘IBM India’) and IBM Daksh.

 
As per the proposed combination, the CRM BPO business of IBM, including its Indian operations, would be transferred to Synnex. In India, the proposed combination would result in the acquisition of IBM Daksh by Synnex after reorganisation of the relevant assets to ensure that the entire CRM BPO business of IBM in India is with IBM Daksh.

 
CCI observed that while a substantial portion of the revenues of IBM Daksh is derived from exports, the revenues of its subsidiary in India (i.e. Concentrix Technologies (India) Private Limited) from the domestic market are insignificant.

 
CCI held that the information technology business process outsourcing industry in India is relatively fragmented and also characterised by the presence of several large players. In light of the above, CCI was of the view that the proposed acquisition is unlikely to have an Adverse Effect in India.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com


Shuva Mandal, AZB & Partners 

shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com


Percy Billimoria, AZB & Partners 

percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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