March 22, 2012 – Convergys Corporation announced Thursday it will sell its information management division for $449 million to IT and networking integration provider NEC Corporation.
The proposed deal spans all of Convergys’s information management offerings and services, such as its Smart Revenue Solutions for communications and logistics markets, according to a news release from NEC. Convergys CEO Jeff Fox said in a release that the deal will strengthen the balance sheet and shareholder returns at Cincinnati-based Convergys, as well as keep the focus on its core of customer and relationship management offerings and services.
In return, NEC, a massive Japanese-based provider of technology and business systems, will be able to offer more capabilities to the service provider industry, said President Dr. Nobuhiro Endo.
“Convergys’ IM business has distinguished itself with a record of successful [business service system] implementations and exceptional professional services for leading international communications carriers,” said Endo in a news release.
The definitive agreement announced Thursday involves an all-cash transaction, according to a news release. The deal is subject to closing conditions and expected by Convergys to close late in the second quarter of 2012.
Kate Leggett, Senior Analyst for Business Process Professionals at Forrester Research, says the move Thursday rings similar to the divestment in the HR management business in mid-2010 by Convergys, which was also an effort to focus on its CRM offerings and key verticals “in this highly competitive business.”
Convergys ranked 16th in Information Management’s list of providers in the BI and data management space for 2011, though registered a 9.1 percent drop in revenue from its previous year, according to publicly disclosed figures.
To register for a Webcast presentation on the deal, available until April 20, click here.