Beaverton software and services company PK was acquired at the end of 2021 for $1.6 billion by California-based Concentrix Corp. (Nasdaq: CNXC).
PK’s previous owner private equity firm the Carlyle Group sold its share to the California company in an all-cash transaction. The deal closed Dec. 27, and the two companies are integrating, according to filings with the Securities and Exchange Commission.
PK will remain a wholly owned subsidiary of Concentrix with its employees and management team. It is expected to add $530 million in revenue to Concentrix following the first full year after the deal, Concentrix said in a written statement.
Want more Portland startup news? Sign-up for The Beat delivered to your inbox twice weekly
“We take pride in helping our clients disrupt their markets and Concentrix will allow us to continue to do that on a larger scale.” said Dinesh Venugopal, CEO of PK, in a written statement. “Our vision has always been to drive digital innovation and transformation focused on the customer experience. Concentrix shares this vision, and we are excited to join them as they mark another milestone in their ongoing story of growth.”
PK works with clients across industries to make custom software and facilitate the digital transformation of business lines and operations. It has 5,000 employees across more than 20 offices. The Beaverton company is one of the largest middle market companies in the region.
Concentrix had 2021 revenue of $5.59 billion and profit of $405.6 million, or $7.70 per share. It has more than 270,000 employees worldwide.
The new owner is based in Fremont, California, and is a global provider of customer experience services and technology. In PK, Concentrix gains expertise in the digital IT services market which includes customer experience, retention and trust and loyalty. Within these areas, PK has a portfolio of intellectual property across strategy and design, engineering, analytics and automation.
Concentrix works in a similar space to PK but at a bigger scale working with clients on digital transformation projects for customer experience tools. With this acquisition the company hopes to capitalize on the growing digital IT services that PK focuses on.
“We are incredibly excited to welcome the PK team to Concentrix and build the future of CX together,” said Chris Caldwell, President and CEO of Concentrix in a written statement. “This acquisition adds immediate and meaningful breadth and scale to our CX digital capabilities. It establishes a stronger presence in the complementary CX digital IT services market, while enhancing our ability to continue to increase our margins in high value services.”
