Tallahassee, FL 3/22/12 (StreetBeat) – Convergys Corp. is selling its Information Management business to NEC Corp. for $449 million.The deal includes all of Convergys’ (NYSE: CVG) IM business, including Smart Revenue Solutions for the telecommunications, cable, satellite, broadband, utilities and logistics markets. The sale to NEC is expected to close by the late second quarter of 2012.
“NEC is acquiring a well recognized business, with solid client relationships, a strong solutions portfolio, and very talented base of employees,” Convergys CEO Jeff Fox said in a news release. “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’ information management business are mainly large carriers, including British Telecom.
The company has focused in recent years on streamlining its offerings. In 2010 it sold its human resources management business to British firm NorthgateArinso, and it has also divested of its finance and accounting business process outsourcing business and a cellular partnership with AT&T in Greater Cincinnati.
Convergys has “done a lot of work to simply the number of businesses we’re in and then, also, within those businesses to simplify how we operate,” Robert Lento, president of the company’s global information management group, said last month at the Stifel Nicolaus Technology and Telecom Conference in Dana Point, Calif.
Convergys confirmed its expectations for continuing revenue growth and earnings improvement for fiscal 2012 in its customer management business. In the first quarter, Convergys plans to remove IM from its results for continuing operations and report IM results separately as discontinued operations.
Centerview Partners LLC was the financial adviser and Wachtell, Lipton, Rosen & Katz was the legal adviser for Convergys.
Following Japan-based NEC’s acquisition of Convergys’ IM business, it will be integrated intoNetCracker Technology Corp., a subsidiary of NEC.
NEC provides information technology and network technology products and services for businesses and people around the world.
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