News : Customer Services Provider Convergys to Buy Stream Global
Jan 6, 2014 -- Customer management services provider Convergys Corp (CVG.N) said it would buy rival Stream Global Services Inc from its private equity owners.
Shares of Cincinnati, Ohio-based Convergys jumped after the bell on Monday.
Stream's STRGB.UL clients include Hewlett-Packard (HPQ.N), Microsoft Corp (MSFT.O), Dell Inc, Salesforce.com Inc (CRM.N), Western Digital Corp (WDC.O) and Nike Inc (NKE.N).
The deal is expected to add to profit, excluding items, in the first year after closing, Convergys said.
Convergys will buy Stream from Ares Management and Providence Equity Partners, as well as from LiveIt, the business process outsourcing investment arm of Ayala Corp.
"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," Convergys's Chief Executive Andrea Ayers said.
Eagan, Minnesota-based Stream, which has 40,000 employees, provides customer relationship management services in 22 countries and 35 languages. Convergys will have about 125,000 employees following closure of the deal, expected in the first quarter of 2014.
Posted by Veronica Silva Cusi, news correspondent
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Headquartered in Atlanta, Convergent is a business process outsourcing, revenue cycle and receivables management companies, with fourteen North American operating centers across all four time zones. The company has more than sixty years of history serving a diverse industry customer base, including contact center solutions, receivables management outsourcing, commercial receivables management and healthcare revenue cycle management. Convergent empowers its clients with an innovative combination of an adaptable workflow engine, technology-enabled operations, next-generation analytics and professional services to deliver superior financial performance and high levels of client and consumer satisfaction.
Published: Wednesday, January 8, 2014