iQor Acquires Jabil Aftermarket Services to Create Leading Customer and Product Support Company
NEW YORK, Dec. 17, 2013 /PRNewswire/ -- iQor, a global provider of business process outsourcing services, today announced the signing of a definitive agreement to acquire the Aftermarket Services business of Jabil Circuit, Inc. (NYSE: JBL) for $725 million. This acquisition will create the first global company with the capabilities to address the $40 billion market at the intersection of customer relationship management and product support solutions.
Following completion of the transaction, iQor will have more than $1.5 billion in revenues, more than 31,000 employees and operations in 16 countries around the world. As part of a multiyear contract, iQor Aftermarket Services will become the exclusive aftermarket service provider for Jabil Circuit, Inc., which will retain a financial stake in the combined company.
The transaction will combine iQor's leading customer support capabilities with Jabil Aftermarket Services' experience as the premier product support services organization to create a unique service offering that addresses the needs across the customer value chain, from customer care (including sales, technical support, and accounts receivables management) to product diagnostics to repair services. The combined entity will be strongly positioned to provide global clients in a range of industries with integrated support across their supply chain and customer ecosystems.
Jabil Aftermarket Services, headquartered in St. Petersburg, Fla., is the leading provider of aftermarket services to industry-leading electronics manufacturers, retailers, and service providers in categories such as computing, consumer devices, mobility, networking, storage, telecommunications, and medical devices. The business has 13,000 employees and 28 facilities around the world to serve its global customers.
iQor, headquartered in New York City, provides customer care, receivables management, and outsourcing solutions for blue-chip, global brands. The company's 18,000 employees in 39 locations serve clients in industries ranging from telecommunications, financial services, and government to retail, healthcare and transportation.
"At iQor, we see more and more of our clients consolidating outsource service providers in order to reduce complexity and streamline operations, and this transaction addresses that market dynamic in a powerful way," said Hartmut Liebel, CEO of iQor, who was previously CEO of Jabil Aftermarket Services for more than 10 years, during which time the business transformed into the leader in its industry. "In addition, this combination diversifies iQor's revenue stream, and enhances our ability to extend our platform by adding adjacent industries and capabilities over time."
Jabil Aftermarket Services will initially be a separate business unit of iQor that will operate as iQor Aftermarket Services, and remain headquartered in St. Petersburg. The business will continue to be run by its current strong, dedicated management team under the leadership of Bryan Maguire.
"Over time, we expect this business combination will help provide a comprehensive solution to today's fragmented consumer experience," said Maguire. "We believe the ability for one organization to address the product support and customer service chain will help ensure a seamless and positive experience for our clients and the customers they serve."
"iQor is excited to acquire Jabil Aftermarket Services based on its deep expertise working with major electronics manufacturers, retailers, and service providers around the world, which enables us to create a unique service offering and enhances our competitive advantage to gain market share," said Gary Crittenden, Chairman of iQor who also serves as Chairman of iQor's lead investor, HGGC. "iQor's customers will benefit from a considerably larger global footprint and additional financial resources to invest in all lines of its business."
Financing for the transaction comes from iQor, and an additional investment from its investors, HGGC, The Rohatyn Group, and Starr Investment Holdings. iQor was advised on the transaction by Morgan Stanley, Credit Suisse, and GE Capital Markets, Inc. Completion of the transaction is contingent upon customary regulatory approvals and is expected to be completed in the first quarter of 2014.
Headquartered in New York City, iQor is a global provider of intelligent customer interaction and outsourcing solutions with 18,000 employees in 39 Centers of Excellence. Using data science and analytics intelligence, iQor delivers extraordinary customer experiences that enhance revenue while promoting and protecting its clients' brands. iQor specializes in providing data-driven, technology-empowered customer support and processing services in the consumer and commercial markets. For more information, please visit www.iqor.com or www.twitter.com/iqor.