iQor Acquires Jabil Aftermarket Services to Create Leading Customer and
Product Support Company
NEW YORK, Dec. 17, 2013
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
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,iQorAftermarket Services
willbecome the exclusive aftermarket service provider forJabil 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
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
Contact: Tom Faust, 646-502-3513, TFaust@StantonPRM.com
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