Narayan AmmachchiIn what is described as a history-making deal, Silicon Valley-based technology vendor Synnex has agreed to purchase global BPO behemoth Convergys for US$2.4 billion.
The BPO provider will soon be folded into Concentrix, which Synnex acquired in 2006.
Convergys brings Synnex an additional US$2.7 billion in BPO sales, a global BPO footprint with 12 new countries, 6,000 services professionals and new customers in key vertical markets.
Once the deal is completed, Synnex will have a global BPO footprint of 40 countries servicing clients in 70 different languages.
The Silicon Valley firm is ideally positioned to leverage Convergys’ huge assets in technology and talent pool. Cincinnati-based Convergys reported US$2.7 billion in revenue last year.
By using the increased leverage from Convergys’ global infrastructure, the technology distributor can generate cost savings of up to US$150 million over three years period.
Furthermore, the transaction will strengthen four of Synnex’s strategic verticals including banking and financial services, healthcare, technology, and automotive.
“This transaction is expected to enhance our earning potential while continuing our strategy of investing in high value services,” stated Dennis Polk, President and Chief Executive Officer of Synnex.
Last week, Reuters reported, citing sources, the two companies were in talks for a deal, after Convergys chief executive, Andrea Ayers, stepped down following nearly 30 years at the Cincinnati-based company earlier this year.
Convergys was spun off from Cincinnati Bell Inc. and became a separate, publicly traded company in 1998.
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