Convergys Corp., a Cincinnati-based company with a significant Jacksonville operation, announced a $2.8 billion buyout agreement late Thursday.
Synnex Corp. agreed to buy the customer service outsourcing company in a $2.8 billion deal.
California-based Synnex, which describes itself as a business process services company, said Convergys will be combined with its customer services subsidiary, Concentrix.
Convergys’ Jacksonville operation traces itself to a company called AT&T American Transtech that holds a significant place in local business history.
American Transtech was formed in 1983 to handle shareholder services for the court-ordered breakup of AT&T, and the decision to locate the business in Jacksonville with 1,300 employees was a significant win for the city.
AT&T’s decision started a wave of major companies that located back-office operations in Jacksonville over the next three decades.
The business grew to handle customer service functions for other companies in addition to AT&T and employed more than 4,000 in Jacksonville at its peak.
AT&T sold the business in 1998 to Cincinnati Bell Inc., which merged it with its own customer service division. Later in 1998, Cincinnati Bell spun off the division into a separate public company called Convergys.
The company’s Jacksonville employment has fluctuated over the years as contracts have been won and lost. The most recent data from JAXUSA Partnership shows Convergys’ employment at 700 in Jacksonville.
Convergys’ total global employment was 115,000 at the end of 2017.
Convergys CEO Andrea Ayers said in a news release that employees “will join a company with highly complementary capabilities and a similar culture. “
“We expect Convergys employees to gain expanded career opportunities as part of a larger organization with an enhanced industry-leading position. Concentrix is an ideal partner for Convergys, and we look forward to a seamless transition,” she said.
Synnex agreed to pay $13.25 a share in cash and 0.1193 shares of Synnex stock for each Convergys share, with a total value of $26.50 a share.
Convergys said that price is an 18 percent premium to its stock price on May 10, before the trading price rose on market speculation about a possible buyout.
The $2.8 billion buyout price includes the assumption of $170 million in debt.
The companies hope to complete the merger by the end of this year.