Shares of ServiceSource International, Inc. (NASDAQ: SREV) surged 41% as the firm has confirmed that it has inked an acquisition agreement with Concentrix Corporation (NASDAQ: CNXC). As per the agreement, Concentrix will buy ServiceSource for $1.50 per share in an all-cash transaction valued at nearly $131 million, inclusive of ServiceSource’s net cash.
Concentrix's growth strategy of investing in capabilities that change and deliver spectacular customer experiences for the world's finest brands has reached another milestone with this purchase. After the transaction's completion, Concentrix will welcome ServiceSource's skilled team, which will continue to provide revenue generation services based on data insights and methodology, with the added benefit of delivering to Concentrix clients.
ServiceSource has earned a reputation as a global outsourced go-to-market services provider that provides B2B digital sales and customer success solutions to some of the world's most cutting-edge technology and new economy firms. Concentrix's products in a high-value, expanding segment of the industry, servicing considerable pent-up customer demand, will be enhanced by the purchase of ServiceSource. After synergies, the transaction is anticipated to be advantageous to growth and profitability.
The transaction is scheduled to finalize in the second half of the fiscal year 2022, dependent on usual closing conditions such as shareholder approval and regulatory approvals. Edenbrook Capital, LLC and Archon Capital Management LLC, which controlled roughly 31% of ServiceSource's shares as of May 6, 2022, have committed to vote in support of the deal.