Report: Synnex Working To Buy Convergys, But No Guaranteed Deal

IT distribution powerhouse Synnex Corp. is in talks to acquire Cincinnati-based Convergys Corp., according to reports.

The move would combine Synnex’s international reach with Convergys Corp.’s call center capabilities.

Reuters, citing people familiar with the matter, said on Tuesday that there was no guarantee that the two companies would come to an agreement. Word of the deal caused stock prices in both companies to rise in after-hours trading on Tuesday, however Convergys shares were trading lower early Wednesday morning.

[Related story: Synnex President And CEO Kevin Murai Retires; COO Dennis Polk To Assume Distributor's Top Exec Role]

Convergys was spun off from Cincinnati Bell Inc. and became a separate, publicly traded company in 1998. The company reported 10 percent lower earnings in the first quarter of this year, on revenue of $674 million, which the company blamed on ’headwinds’ from two of its leading customers.

The company also said it also expected to lose money in the second quarter.

In January, CEO Andrea Ayers, who had been with Convergys since 2012, announced she was leaving the company.

Synnex, meanwhile, has been booming. The company has climbed the Fortune 500 ranks, moving up 43 spots in the last two years, while revenue last year grew 21.2 percent to $17 billion while profits also rose 28.2 percent to $301 million

In January the company announced that Kevin Murai, the long-time president and CEO would retire, while Dennis Polk, the company’s COO since 2006, would take over leadership. Murai led Synnex's $830 million acquisition of Westcon Americas last June.

Representatives from both Convergys and Synnex did not respond to requests for comment by press time.