Shares of Sykes Enterprises (SYKE) have skyrocketed today, up by 30% as of 11:30 a.m. EDT, after the company said it was being bought out by Sitel Group. The two companies offer complementary services in customer experience management.
Sitel has agreed to buy all outstanding Sykes shares in an all-cash deal that values the latter company at $54 per share, representing a valuation of approximately $2.2 billion on a fully diluted basis. That price translates into a premium of 31% over yesterday's closing price. Sitel says that the combined company will be better positioned for growth as one of the top companies in business process outsourcing (BPO), offering a comprehensive suite of products and services to enterprise customers.
"Thanks to the hard work of our team members, this transaction validates the execution of our vision, strategy, our differentiated full lifecycle business model and promises immediate and certain value for our stockholders at an attractive premium," CEO Chuck Sykes said in a release. "As we embark on the next phase of our journey, there is an opportunity to take the business to historic heights with a proven partner with similar culture and values."
Sitel CEO Laurent Uberti added that the combined technology company will have a greater geographical footprint, allowing it to expand its global reach. The deal is not contingent upon any special financing conditions and is expected to close in the second half of the year.