Convergys Corporation (NYSE: CVG), a global provider of customer experience outsourcing, has announced that it has entered into a definitive agreement under which Synnex Corporation (NYSE: SNX), a business process services company, will acquire Convergys in a cash and stock transaction with an enterprise value of approximately USD 2.8 billion, including approximately USD 170 million of Convergys outstanding net debt, the company said.
Under the terms of the agreement, Convergys shareholders will receive USD 13.25 per share in cash and 0.1193 shares of Synnex common stock for each Convergys common share they own, subject to a collar as described in the agreement.
The implied price of USD 26.50 per Convergys share represents a LTM EBITDA multiple of 8.4x (as of March 31, 2018) and an 18% premium to the company´s unaffected closing stock price on May 10, 2018, the last trading day prior to published market speculation regarding a potential transaction involving Convergys.
The transaction has been approved by both companies´ boards of directors and is expected to close by the end of the 2018 calendar year, subject to the approval of shareholders of both companies, the receipt of regulatory approvals and other customary closing conditions.
Centerview Partners is acting as financial advisor to Convergys, and Wachtell, Lipton, Rosen & Katz is legal counsel.
Convergys delivers consistent, quality customer experiences in 58 languages and from more than 150 locations around the globe. Visit www.convergys.com to learn more.
Synnex Corporation is a Fortune 500 corporation and a business process services company, providing a comprehensive range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement strategy to a broad range of enterprises. Synnex distributes a broad range of information technology systems and products, and also provides systems design and integration solutions. Concentrix, a wholly owned subsidiary of Synnex Corporation, offers a portfolio of strategic solutions and end-to-end business services around customer engagement strategy, process optimization, technology innovation, front and back-office automation and business transformation to clients in ten identified industry verticals. Founded in 1980, Synnex Corporation operates in numerous countries throughout North and South America, Asia Pacific and Europe. Additional information about Synnex may be found online at www.Synnex.com.