Convergys to acquire Stream for $820 million

CINCINNATI, USA: The customer management services providers, Convergys Corporation and Stream Global Services, Inc.,  have announced entry into a definitive merger agreement under which Convergys will acquire Stream for a total enterprise value of $820 million in cash. 

By adding Stream's complementary client base, geographic footprint and service capabilities, Convergys expects the acquisition to expand and strengthen its US 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.

Stream serves a number of the world's leading companies in the technology, computing, telecommunications, retail, entertainment/media and financial services industries, and its marquee client list is complementary to Convergys' client base. Stream's technical support services expertise is expected to strengthen Convergys' position in the technology industry and also to provide new opportunities to offer Convergys' extensive suite of capabilities to a broader set of clients.

By integrating Stream's delivery capacity in the Americas, Europe, Asia-Pacific, Middle East and Africa, Convergys expects to extend its geographic reach, breadth of languages and service capabilities. Stream's in-country language skills across Europe and Latin America are expected to provide Convergys with augmented solution offerings for multinational clients in the United States and around the globe.

The transaction is expected to provide Convergys with a more diversified portfolio of clients, geographic footprint, and service capabilities to enhance revenue, cost efficiency and opportunity for future growth, which Convergys expects will strengthen its prospects for long-term revenue and profit improvement. Once the transaction is complete, Convergys expects to have approximately 125,000 employees serving clients in 35 languages from over 135 contact centers in 25 countries.

The transaction is expected to close in the first quarter of 2014.