PCC clears Synnex buyout of Convergys

MANILA, Philippines — The Philippine Competition Commission (PCC) has cleared the acquisition by business process services firm Synnex Corp. of outsourced services provider Convergys Corp.

In a decision signed Sept.20, the PCC said the transaction “does not result in substantial lessening of competition in the business process outsourcing market.”

The transaction involves Synnex buying 100 percent of Convergys’ outstanding voting shares for $26.50 per share, in consideration of the payment of cash in the amount of $13.25 per share and 0.1193 Synnex common stock for each share of Convergys common stock.

While both parties’ operations overlap on a global scale through service centers and clients in the different continents, the PCC merger review found that many other competitors remain in the relevant market after the transaction.

PCC also did not find significant barriers to entry and expansion in the said market.

Based in California Synnex operates in two business segments, particularly technology solutions which focuses on information technology distribution and Concentrix for customer care outsourced services.

At present, it has 125 delivery centers in more than 30 countries in North and South America, Asia-Pacific and Europe in 40 languages.

Also headquartered in the US, Convergys provides customer experience outsourcing.

The firm currently has approximately 115,000 employees in 33 countries, interacting with clients’ customers in 58 languages.

Synnex’s entire client base is located outside the Philippines.

A large part of Convergys’ customers are located abroad as well.