Synnex gets $1.8 billion debt commitment for Convergys purchase

By Sara Rosenberg

New York, June 28 – Synnex Corp. has received a commitment for $1.8 billion in debt financing to help fund its acquisition of Convergys and maintain liquidity for ongoing working capital needs, according to a company presentation.

Under the agreement, Convergys is being bought for $26.50 per share, which includes $13.25 per share in cash and 0.1193 Synnex common shares per Convergys share. The transaction is valued at about $2.43 billion.

Debt to EBITDA is expected to be around 3.5 times at closing, with the plan being to return to historical levels of 2.5 times or less within 18 to 24 months.

Closing is expected by the end of the year, subject to the approval of shareholders of both companies, regulatory requirements and customary conditions.

Synnex is a Fremont, Calif.-based business process services company. Convergys is a Cincinnati-based customer management services provider.

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