(NYSE: CVG), a global leader in
, announced today it has signed a definitive agreement to sell its Information Management (IM) business for $449 million in cash to NEC Corporation (NEC; TSE: 6701), a leader in the integration of IT and network technologies that benefit businesses and people around the world. The transaction covers all of the IM business, including its Smart Revenue Solutions for the telecommunications, cable, satellite, broadband, utilities, and logistics markets.
“NEC is acquiring a well recognized business, with solid client relationships, a strong solutions portfolio, and very talented base of employees,” said Jeff Fox, president and CEO of Convergys. “NEC’s established position in the industry, global scale, and commitment to invest in the business will benefit the customers and employees of IM. In return, the proceeds from the transaction further strengthen our balance sheet and allow us the financial flexibility to invest in our business and return capital to shareholders.”
“Convergys’ IM business has distinguished itself with a record of successful BSS implementations and exceptional professional services for leading international communications carriers,” said Dr. Nobuhiro Endo, President of NEC. “The acquisition of the IM business will enable NEC to bring even greater value and benefits to the service provider industry.”
Convergys expects the transaction to be completed by late second quarter of 2012, subject to the expiration of regulatory waiting periods and other customary closing conditions. Centerview Partners LLC was the financial advisor and Wachtell, Lipton, Rosen & Katz was the legal advisor for Convergys Corporation.
Transaction Impact on Guidance
Convergys is confirming its expectations for continuing revenue growth and earnings improvement for the full year 2012 in its customer management business.
To provide a more comprehensive understanding of the company’s underlying performance in 2012, beginning in the first quarter Convergys plans to remove IM from its results from continuing operations and report IM results separately as discontinued operations.