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Timothy Prickett Morgan, of The Four Hundred, reports that IBM (News - Alert) has sold off its BPO services business to Concentrix, a wholly owned subsidiary of Synnex. According to the NASDAQ website, the $505 million transaction will be paid to IBM in $430 million in cash and $75 million in stock. NASDAQ’s website added that IBM’s decision to make the sale was motivated by their long-term strategy to “shift its focus to verticals in which it can garner higher margins,” which has also led to the sale of such business as PCs, hard drives, and retail storage solutions.

The statement from IBM assures that this will be beneficial to their clients. Lori Steele, the general manager of IBM Global Process Services said of the deal, “This partnership between IBM and SYNNEX (News - Alert) will provide our clients with the innovation they have come to expect from IBM through our deep capabilities in advanced analytics, social business, cloud and smarter commerce, complemented by Concentrix’ flexible and adaptive global customer care delivery network.”

Synnex is enthusiastic about what the deal will mean for its future. Kevin Murai, the president and CEO of Synnex stated, “This acquisition will significantly extend our portfolio of offerings and delivery capabilities that will make Concentrix a global Top 10 player in this growing market.” According to TMCnet, the U.S. healthcare BPO market, alone, will be worth $14.7 billion by 2018. While the deal is one that comes with a hefty price tag (News - Alert), and IBM seems to see little value in holding onto its old BPO business, the potential for Synnex is enormous.

For investors who are wondering how IBM’s decision will affect them, NASDAQ offers a full breakdown on their website. The results of the analysis reveal a $234 Trefis price estimate for IBM, 20 percent above its current market price.