March 29 (Reuters) – Concentrix Corp (CNXC.O) will buy Paris-based outsourcing and consultancy firm Webhelp in a $4.8 billion deal, the business services provider said on Wednesday, to expand outside North America and add clients in fast-growing markets.

Webhelp specializes in sales, marketing and payment services across Europe, Latin America and Africa, and will bring about 1,000 new clients, the company said.

The combined company is expected to have $9.8 billion in revenue for fiscal year 2023 on a pro forma basis, and will be headed by Concentrix CEO Chris Caldwell.

“The combination of these two companies allows us to take even more access to the $550 billion expanded marketplace we compete in,” Caldwell said on a conference call.

Shares of California-based Concentrix were down more than 7% in extended trading. Separately, the company also posted an over 20% slide in first-quarter net income to $87.9 million. Revenue rose 6.5% to $1.64 billion.

Webhelp will receive 14.9 million shares of Concentrix, 500 million euros ($542 million) in cash, and a 700-million euros note payable in two years, the company said.

Webhelp’s targeted net debt of about 1.55 billion euros will also be refinanced when the transaction closes.

Concentrix shareholders will own about 78% of the combined company and Webhelp shareholders the rest after the deal closes, which is expected by the end of the year.

The company expects cost benefits of $75 million in the first full year after closing, with the deal adding to adjusted earnings per share at the end of that period.

($1 = 0.9226 euros)

Reporting by Deborah Sophia in Bengaluru; Editing by Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles.