Concentrix Announces Acquisition of PK, a Leading Global CX Design Engineering Company

• Brings strong portfolio of intellectual assets and advanced CX technology

• Significantly enhances CX digital transformation capabilities at scale

• Strengthens presence in high growth, $270B digital IT services market

• Enhances financial profile through accretion to EPS and growth rate

Concentrix Corporation, a leading global provider of customer experience (CX) services and technologies, announced that they have reached a definitive agreement in which Concentrix would acquire PK, a leading global CX design engineering company. As part of the transaction, funds managed by Global Investment Firm Carlyle (NASDAQ: CG) will sell its majority stake in PK, after initially investing in the company in 2016. The transaction is expected to close in Concentrix’ first fiscal quarter of 2022, subject to regulatory requirements and other customary closing conditions.

PK is a leading global CX digital design and engineering firm, partnering with the world’s best brands to create pioneering experiences that accelerate digital outcomes for their customers, partners, and staff. With over 5,000 staff across 20 cities in four countries, PK has been recognized and awarded worldwide for designing and engineering digital experiences at scale.

This acquisition marks an evolutionary milestone for Concentrix, supporting the growth strategy of investing in digital transformation to deliver exceptional customer experiences. PK gives Concentrix the ability to scale digital capabilities faster while building excellence in key high growth areas of CX Design & Development, AI, Intelligent Automation and Customer Loyalty. With a complementary client base and similar vertical focus, PK provides attractive opportunities within core and adjacent markets. The combination of two leading providers uniquely brings together the best of digital CX solutions and services.

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Transaction Details:

• Investment of approximately $1.6 billion
• Expect PK to contribute approximately $530 million of revenue and $85 million of adjusted EBITDA in the first full year following the acquisition, reflecting 20% year-over-year growth for PK
• Transaction expected to be financed primarily through additional bank debt borrowings under amended credit facility
• Net leverage expected to be 2.5x at close on a trailing twelve-month pro forma basis. Concentrix expects to reduce net leverage within the first twelve months after the transaction closes
• Expect non-GAAP diluted earnings per common share accretion of at least $0.50 in the first full year, with further accretion expected in the second full year

“We are incredibly excited to welcome the PK team to Concentrix and build the future of CX together,” said Chris Caldwell, President and CEO of Concentrix. “This acquisition adds immediate and meaningful breadth and scale to our CX digital capabilities. It establishes a stronger presence in the complementary CX digital IT services market, while enhancing our ability to continue to increase our margins in high value services.”

“We take pride in helping our clients disrupt their markets and Concentrix will allow us to continue to do that on a larger scale.” said Dinesh Venugopal, CEO of PK. “Our vision has always been to drive digital innovation and transformation focused on the customer experience. Concentrix shares this vision, and we are excited to join them as they mark another milestone in their ongoing story of growth.”

Conference Call and Webcast:

A conference call will be held to discuss the acquisition this morning, Monday, November 22, 2021, at 9:00 AM (ET) / 6:00 AM (PT), hosted by Chris Caldwell, President and Chief Executive Officer and Andre Valentine, Chief Financial Officer of Concentrix.

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