Synnex Corporation paid $85m for Sydney software developer Tigerspike

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Synnex Corporation paid $85m for Sydney software developer Tigerspike

Synnex Corporation paid $US68.5 million (A$84.73 million) for Sydney-headquartered app developer Tigerspike in July last year, new documents have shown.

Revealed in US-based Synnex Corporation’s financial results for the year ending 30 November 2017, the company referred to the Tigerspike acquisition as an asset boost for its Concentrix business.

“On July 31, 2017, we acquired Tigerspike, a digital products company specializing in strategy, experience design, development and systems integration, for a preliminary purchase price of US$68.5 million in cash subject to post-closing adjustments, including $10 million payable upon finalisation of the post-closing adjustments,” the report read.

“The acquisition has been integrated into our Concentrix segment and is expected to enhance Concentrix' digital and mobility competencies by providing improved business intelligence and performance for its clients through enabling technologies that are designed to create effortless, personalised end-user engagements.”

According to the report, the preliminary purchase price consisted of net tangible liabilities of US$700,000, goodwill of US$43.7 million and intangible assets of US$25.4 million

The deal saw Tigerspike’s 300 employees in Australia, Singapore, UAE, Japan, USA, Poland and the UK join Concentrix’s 100,000 staff across the globe.

Tigerspike is a digital application developer whose high-profile portfolio has included website and mobile development projects for Emirates, a payment processing app for the Department of Environment, Land, Water and Planning, a fuel app for 7-Eleven and an HR staff onboarding solution for Westpac.

The developer has partnerships with Apple, Amazon Web Services, Telstra and Google.

Following the acquisition, Tigerspike's Sydney-based chief executive, Alex Burke, remained as leader of Tigerspike and joined the Concentrix senior executive staff.

Concentrix represents 12 percent of Synnex Corporation’s 2017 consolidated revenue, which was US$17 billion.

Synnex Corporation is publicly listed on the New York Stock Exchange. The company has a business investment relationship with Taiwanese corporation Mitac Holdings Group, which, along with its affiliates beneficially owned about 24 percent of Synnex Corps outstanding common stock.

Mitac Holdings owns a noncontrolling interest of 8.7 percent in Mitac Incorporated, a privately-held Taiwanese company, which in turn holds a noncontrolling interest of 13.6 percent in the publicly traded Synnex Technology International, the parent company of distributor Synnex Australia.

The company also made mention of its acquisition of distributor Westcon-Comstor's Americas business, as well as its 10 percent minority investment in Westcon EMEA and APAC in a deal worth up to US$830 million.

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