SYNNEX and Convergys combine in $2.8bn deal

BY Fraser Tennant

In a deal which combines two industry leaders to create a “premier global customer engagement services company”, SYNNEX Corporation is to acquire Convergys Corporation in a transaction valued at approximately $2.8bn.

Under the terms of the agreement, business process services company SYNNEX will acquire call centre operator Convergys in a cash and stock transaction, including approximately $170m of Convergys outstanding net debt. Convergys shareholders will receive $26.50 per share, which includes $13.25 per share in cash and 0.1193 SYNNEX common shares for each share of Convergys common stock.

Following the close of the transaction, it is expected that Convergys will be combined with SYNNEX’s industry-leading customer relationship management business process outsourcing (CRM BPO) subsidiary, Concentrix – enhancing the capabilities of both organisations and creating a premier global customer engagement services company.

Synnex acquired Concentrix in 2006.

"We continue to be focused on driving superior returns to our shareholders through our investments," stated Dennis Polk, president and chief executive of SYNNEX Corporation. "This transaction is expected to enhance our earning potential while continuing our strategy of investing in high value services. Following this acquisition, we expect to have a solid leadership position in technology solutions and Concentrix businesses, with more balanced adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) contribution."

The SYNNEX/Convergys transaction has been approved by both companies’ boards of directors and is expected to close by the end of 2018, subject to the approval of shareholders of both companies, the receipt of regulatory approvals and other customary closing conditions.

“We are pleased to have reached this agreement, which provides important benefits for all of our stakeholders, including our shareholders, who will receive an immediate premium in addition to value from their equity participation in the growth and synergies resulting from the combination of Convergys and SYNNEX,” said Andrea Ayers, president and chief executive officer of Convergys. “Our clients will be even better served by the combined organisation’s increased scale, strong talent, best-in-class analytics, technology and digital offerings, and a shared commitment to helping them successfully navigate the increasingly complex CX ecosystem.”

News: Synnex Reaches Deal to Acquire Convergys

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