By James A. Loyola
The Philippine Competition Commission (PCC) has approved the acquisition of Convergys Corporation by Synnex Corporation.
Philippine Competition Commission
Both firms are among the leading customer care outsourced service providers with presence in the Philippines.
The parties’ Agreement and Plan of Merger outlined that Synnex will buy 100 percent of Convergys’ outstanding voting shares for US$26.50 per share in consideration of the payment by Synnex of cash in the amount of US$13.25 per share and 0.1193 Synnex common stock for each share of Convergys common stock.
In its decision, the PCC found that the transaction “does not result in substantial lessening of competition in the business process outsourcing market.”
PCC noted that both parties’ operations overlap on a global scale, with service centers and clients located across the different continents.
However, the PCC merger review found that many other competitors remain in the relevant market after the transaction. The Commission also noted that there are no significant barriers to entry and expansion in the said market.
Synnex is based in California, USA and operates in two business segments: (1) Technology Solutions, which focuses on IT distribution; and (2) Concentrix, which provides customer care outsourced services.
It provides business-to-business services that help customers and business partners grow and enhance their customer-engagement strategies in over 125 delivery centers in more than 30 countries in North and South America, Asia-Pacific and Europe in 40 languages.