Convergys to Acquire Geneva Technology
By Mike Farrell -- Multichannel News, 3/6/2001 11:44:00 AM
Cable billing company Convergys Corp. has signed a deal to acquire a British software developer for $692 million in stock, giving it a foothold in the international market.
Convergys said Tuesday that it would issue 17.6 million shares of its common stock for all of the outstanding shares of Geneva Technology Ltd. of Cambridge, United Kingdom. Based on Convergys' closing price of $39.35 per share March 5, the deal is worth about $692 million.
Geneva -- which makes billing software for the telecommunications, electronic-commerce, utilities and online-services markets -- will become a wholly owned subsidiary of Convergys after the deal is closed, expected in April.
In a press release, Convergys said key elements in its strategy have been to increase its penetration in markets outside of the United States, to strengthen its position in Internet-protocol billing and to offer a full suite of services to its customers.
'The combination of Convergys and Geneva Technology immediately enhances our ability to succeed in each of these areas,' Convergys chairman Jim Orr said in a prepared statement.
Convergys expects the merger to add about $70 million in revenue during 2001, growing to $125 million in 2002. However, the company said, it would also have a negative impact on earnings per share, diluting it by 11 cents and 5 cents in 2001 and 2002, respectively.
Convergys' stock took a hit in afternoon trading Tuesday, dropping 84 cents to close at $38.51 each.
No related content found.
Featured Company
-
Telestream
Telestream products are used by the world's leading media and entertainment companies and corporations for transcoding and workflow automation. Telestream helps customers transform their media for multiplatform distribution to web, mobile, DVD, cable VOD, podcast and broadcast pl..more
VIEW ALL GALLERIES
