SYNNEX to Acquire Convergys
SYNNEX, a business process services company, late yesterday announced plans to acquire Convergys, a provider of customer experience outsourcing, for $2.8 billion in a cash and stock transaction that is expected to close by the end of the year.
Following the close of the transaction, SYNNEX will combine Convergys with its own Concentrix CRM outsourcing services subsidiary.
That move is expected to enhance SYNNEX's position in the business process outsourcing space; increase Concentrix's scale, strategic client base, and geographical footprint; diversify its revenue base; and strengthen its position in strategic industry verticals.
Convergys was founded in 1998 and is based in Cincinnati. Though three-quarters of its revenue comes from U.S. operations, the company manages 125 locations in 30 countries and employs 115,000 people. Its base of more than 265 clients includes firms mostly in the communications, technology, retail, financial services, and healthcare verticals.
Together, Concentrix and Convergys will have a customer base of 650 clients, more than 225,000 employees, and operations in 40 countries around the world.
"We are pleased to have reached this agreement," said Andrea Ayers, president and CEO of Convergys, in a statement. "Convergys clients will be even better served by the combined organization'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 [customer experience] ecosystem.
"Concentrix is an ideal partner for Convergys, and we look forward to a seamless transition," Ayers said.
"The pace of change in customer experience requires constant innovation and service transformation, delivered globally, at scale," said Chris Caldwell, president of Concentrix, in a statement. "A unique customer engagement strategy with next-generation experiences and business improvements is critical. 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. We are incredibly excited to welcome the great talent from Convergys to our Concentrix team."
Donna Fluss, president of DMG Consulting, says Convergys' reputation for innovation might have been a key component of the deal. "It's a major statement when a company and institution like Convergys is acquired. Although some may call it a stretch, the robotics revolution is going to have a major impact on the outsourcing world. Convergys got a head of the game," she says.
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