Global business process outsourcing provider Sykes Enterprises Inc. (SYKE:NASDAQ), which offers multichannel demand and global client management and digital transformation services, today announced that it has entered into a definitive merger agreement with worldwide customer experience (CX) products and solutions company Sitel Group®, whereby a wholly owned subsidiary of Sitel will acquire 100% of Sykes' outstanding common shares for $54 per share. The firms stated that the total value of the transaction is equal to around $2.2 billion on a fully diluted basis.
The company's President and CEO Chuck Sykes commented, "This transaction validates the execution of our vision, strategy, our differentiated full lifecycle business model and promises immediate and certain value for our stockholders at an attractive premium…In Sitel Group, I am confident that we have a valuable partner with a solid heritage of deep industry knowledge and experience, solid industry reputation, a shared vision and a people-first culture to better serve customers."
Sitel Group's President and CEO Laurent Uberti remarked, "By joining forces with such a healthy, profitable and financially solid U.S. brand that also has a stellar reputation, we will further enhance our global reach. With this combination, we will be a more competitive BPO player with a wide range of CX products and solutions, leveraging EXP+™, the Enterprise Experience Platform from Sitel Group, especially with the addition of SYKES' CX solutions in digital, social media and robotic process automation (RPA), through their suite of digital transformation capabilities such as Clearlink and Symphony."
"By combining the two companies, our expanded geographic footprint, multi-shore solutions and greater capacity to serve customers will make us better equipped to help our customers navigate the rapid changes within the sector together…We are excited about our future and continuing our story with best-in-class CX delivery for our customers and a greater employee experience for our combined 155,000 people," Uberti added.
Sykes Enterprises advised that the transaction has already been unanimously approved by its board of directors and is expected to close in the second half of this year, subject to the approval of Sykes' shareholders along with ordinary closing conditions and regulatory approval. The firm noted that upon closing it will become a privately owned company and its shares will no longer be traded on the Nasdaq exchange.
Sykes Enterprises is based in Tampa, Fla., and has offices in 23 countries across six continents. The company provides "full lifecycle" customer experience management and services to Global 2000 companies and their end customers mostly in the communications, financial services, healthcare, technology and transportation & leisure industries. The firm stated that its platform is capable of employing robotic process automation and artificial intelligence solutions in the digital transformation process by engaging with customers at every touchpoint including customer service, digital media and acquisition, sales expertise, technical support and retention.
Sitel Group® is a privately owned company headquartered in Miami, Fla., and describes itself as "a leading global provider of customer experience (CX) products and solutions." The company employs greater than 100,000 people worldwide. The firm offers digital and voice-based solutions and engages in more than 4.5 million interactions daily with its customers in more than 50 languages. The report listed that Sitel's EXP+™ is "a flexible solution with complete cloud capability, designed to simplify the delivery of end-to-end CX services, while boosting efficiency, effectiveness and customer satisfaction."
Sykes Enterprises began the day with a market cap of around $1.6 billion with approximately 39.78 million shares outstanding and a short interest of about 1.4%. SYKE shares opened nearly 30% higher today at $53.50 (+$12.33, +29.95%) over yesterday's $41.17 closing price and reached a new 52-week high this morning of $53.93. The stock has traded today between $53.35 and $53.93 per share and is currently trading at $53.44 (+$12.27, +29.79%).
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