Convergys Closes Acquisition of Intervoice, Enhancing its Leadership in Relationship Management
September 04, 2008
(Cincinnati and Dallas; September 4, 2008) - - - Convergys Corporation (NYSE: CVG), a global leader in relationship management, announces the successful closing of its acquisition of Intervoice, Inc., for $335 million in cash or $8.25 per share.
Both companies are recognized leaders in their respective domains. This combination provides clients with a suite of solutions, from a single source, that enhances customer and employee interactions and simplifies operations. With Intervoice, Convergys is extending its leadership position in relationship management adding additional strengths in the software-based interactive voice response, contact center, and mobile messaging technology and applications markets. This strong leadership position is supported by combining the innovative technology and large, global client base of both companies.
“This acquisition is about investing to address the current and future needs of our clients. Convergys is committed to delivering, and in fact enhancing, Intervoice’s product roadmap,” said Dave Dougherty, president and CEO of Convergys. “Together, we will ensure that all Intervoice and Convergys clients and partners have access to industry-leading technology, professional services, and support solutions that enhance relationship management across all touch points.”
Convergys is already addressing strategic methods of bringing the two companies together in a way that best serves all clients, ensuring they receive the superior levels of service they have come to expect from both companies.
Here are the strategic and financial benefits of the acquisition:
• Comprehensive product and services offering - By integrating Intervoice’s complementary speech automation, Web self-service, and mobile applications, Convergys will offer a comprehensive array of automated and live agent services coming from a single source.
• Expanded client base and growth opportunities in global market - Intervoice currently serves thousands of enterprises and network service providers across multiple industries. Cross-selling opportunities will accelerate Convergys revenue growth in 2009 and beyond.
• Predictable revenue with attractive contribution margins - Intervoice revenues for its fiscal year ended February 28, 2008, were approximately $202 million. Slightly more than fifty percent of these revenues are maintenance and hosted services revenues that are predictable and recurring. These revenues should generate attractive margin contributions.
Intervoice has US locations in Dallas, Orlando, and Mountain View, California, as well as in China, Brazil, the UAE, South Africa, Singapore, Germany, the Netherlands, Ireland, and the UK. Intervoice has served more than 5,000 customers in 80 countries during its 24-year history.
About Convergys
Convergys Corporation (NYSE: CVG) is a global leader in relationship management. We provide solutions that drive more value from the relationships our clients have with their customers. Convergys turns these everyday interactions into a source of profit and strategic advantage for our clients.
For more than 30 years, our unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to marquee clients all over the world.
Convergys has approximately 65,000 employees in 68 customer contact centers and other facilities in the United States, Canada, Latin America, Europe, the Middle East, and Asia, and our global headquarters in Cincinnati, Ohio. For more information, visit www.convergys.com
Contacts:
Investor Contact, David Stein
+1 513 723 7768 or investor@convergys.com
Media Contact, John Pratt
+1 513 723 3333 or john.pratt@convergys.com
