Concentrix Corporation, the provider of CX services and technologies headquartered in Fremont, California, has entered into an agreement to combine with Webhelp, the business process outsourcing (BPO) and consultancy company based in Paris, France, in a transaction valued at approximately $4.8 billion, including net debt. Chris Caldwell, president and CEO of Concentrix, will lead the combined organization, which will deliver an estimated pro forma revenue of $9.8 billion for this year.

Upon completion of customary works council consultations, the parties will enter into a definitive purchase agreement. Under the terms of the agreement, Concentrix will acquire 100% of the shares of Webhelp. Shareholders of Webhelp will receive 14.9 million shares of Concentrix, €500 million of cash proceeds, and a €700 million note payable in two years, bearing an interest rate of 2%, with the right to earn an additional 0.75 million shares of Concentrix if the Concentrix share price reaches $170.00 per share within seven years from the closing of the transaction. Additionally, Webhelp’s targeted net debt of approximately €1.55 billion will be refinanced when the transaction closes.

The deal enhances the position of Concentrix as a leader in the growing $550 billion CX market. Webhelp, a major CX leader in Europe, Latin America, and Africa, will add approximately 1,000 clients to Concentrix, including more than 25 Fortune Global 500 and 200 new economy clients. Together, total clients from the union will number 2,000, including 155 Fortune Global 500 and 320 new economy clients.

The transaction also expands the presence of Concentrix in Europe, Latin America, and Africa. Webhelp, whose clients are predominantly based outside of North America, adds more than 25 new countries to the union, increasing the Concentrix global footprint to more than 70 countries, with a diversified revenue contribution split almost evenly among the Americas, Europe, and Asia-Pacific.

Related Article: Concentrix Closes $1.6 Billion Acquisition of PK

Concentrix chief Caldwell says his company is excited to be joining forces with Webhelp. “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,” states Caldwell. “With our combined strengths, we will be uniquely positioned to redefine the industry and design, build, and run the future of CX.”

Olivier Duha, co-founder and CEO of Webhelp, echoes Caldwell’s sentiments and expresses similar excitement for the future. “I’ve always said that Webhelp’s most precious assets are our clients and our people,” Duha asserts. “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.” Duha is expected to join the 10-member board of directors of the combined company as vice chairman.

Ian Gallienne, CEO of Groupe Bruxelles Lambert, the majority stakeholder in Webhelp since 2019, says the combined entity will be “a leading and transformative force in the marketplace, positioned to create substantial value for all stakeholders.” Groupe Bruxelles Lambert is an established Belgian holding company and a leading investor in Europe. Nicolas Gheysens, a director at the company, will join the board of directors of the combined organization.

The transaction is expected to close by the end of the year, subject to customary closing conditions, including approval by Concentrix shareholders and regulatory approvals. Some shareholders of the company, including MiTAC International Corporation, a Taiwanese electronics company that collectively owns approximately 15% of Concentrix common stock, have agreed to vote their shares in favor of the transaction. Until the transaction is completed, the companies will continue to operate independently.