Synnex Officially Closes Convergys Deal

Its new acquisition will now begin merging with Concentrix to form a huge hybrid BPO

Synnex Office

Synnex has announced the US$2.4 billion acquisition of Convergys has finally officially closed and its integration with Concentrix has begun.

Synnex and Convergys announced that they had received their respective shareholder approval for the transaction and have been granted all regulatory approvals necessary to proceed with the close.

The Silicon-Valley based company agreed to purchase Convergys at the end of June but the transaction was expected to close at the end of 2018 as it was subject to the approval of shareholders of both companies, regulatory requirements and closing conditions – which have now been fulfilled. The integration process has already begun and is expected to be completed over the next 12 months.

The new combined Concentrix organization will provide services in more than 70 languages from approximately 275 locations in over 40 countries across 6 continents.

“This transformational combination reinforces Concentrix’s market position in business services, broadening our global scale and scope, and presents opportunities for revenue and profitability growth,” said Dennis Polk, President and Chief Executive Officer at Synnex Corporation.

Earlier this year, it was not clear why Convergys was on the market, as it was seen to be rapidly expanding, especially after it acquired Stream Global Services in a landmark deal.

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However, its CEO Andrea Ayers resigned after nearly 30 years at the company and reports say that it began looking for a buy-out following her departure. This was followed by its first-quarter revenue falling by 10% to US$674 million as companies began reducing business with the firm.

Synnex acquired Concentrix in 2006 and will now combine it with its new purchase to form one huge hybrid BPO.

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