Thursday, January 9, 2014

Convergys to Acquire Stream for Customer Mgt - $820 Million

Convergys Corp. agreed to acquire Stream Global Services, both providers of customer management services, for a total enterprise value of $820 million in cash.

Convergys said the deal will expand and strengthen its U.S. and global presence in the $55 billion outsourced customer management services industry. When combined, total company revenue is expected to exceed $3 billion, creating the second largest customer management services provider in the world.

Convergys will finance the deal using funds managed by Ares Management and Providence Equity Partners, as well as from LiveIt, the BPO investment arm of Ayala Corp. Convergys also announced the transaction is expected to add approximately $0.35 in diluted earnings per share (EPS) in the first 12 months after close, excluding one-time charges, intangible amortization and integration costs.

“This acquisition is an important step forward in our plan for strategic growth and value creation,” said Andrea Ayers, president and CEO of Convergys. “We believe this combination will strengthen Convergys by diversifying our client base and enabling us to offer a wider range of customer transactions in a more cost effective manner from multiple geographies, at scale. Our plan is to build upon the best practices and management teams from both companies to deliver superior customer benefits and enhanced value for our clients and shareholders, and provide new opportunities for our employees,” Ayers said.

http://www.convergys.com/company/news-events/newsroom/news_release.php?newsid=5087
http://www.stream.com

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