Synnex Corporation (NYSE: SNX) and Convergys have reached an agreement through which Synnex would acquire Convergys, and integrate it with Concentrix, a wholly-owned subsidiary and top global provider of customer engagement CRM BPO services.
This transaction is expected to accelerate Concentrix’ industry position and create a premier global services company. It also enables Concentrix to strengthen its profile in the delivery of high-value services to a strong, diverse client portfolio while bringing together a skilled global talent pool and extending geographic reach.
The disclosed price is approximately $2.43 billion, or $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, subject to a two-way collar.
“This transaction is expected to enhance our earning potential while continuing our strategy of investing in high-value services,” said Synnex CEO Dennis Polk. “Following this acquisition, we expect to have a solid leadership position in Technology Solutions and Concentrix businesses, with a more balanced adjusted EBITDA contribution.”
“The pace of change in customer experience requires constant innovation and service transformation, delivered globally, at scale,” said Chris Caldwell, President of Concentrix. “Following this acquisition, we believe Convergys will add an amazing team with additional subject matter expertise, thought leadership and innovative execution that will benefit clients.”
The transaction is expected to close by the end of the 2018 calendar year, subject to the approval of shareholders of both companies, regulatory requirements, and customary closing conditions.
Services have become a strong component in the profitability of distributors, many of which are constantly on the lookout for opportunities similar to this one.