Call-Center Combo

7/18/2008 8:00 PM Eastern

Convergys, a provider of call-center software and services to cable operators and other industries, announced a definitive agreement to acquire interactive–voice-response vendor Intervoice for $335 million in cash.

Convergys will integrate Intervoice's speech-automation, Web self-care and mobile applications into its portfolio of services to offer “a comprehensive array of automated and live agent services,” the company said.

Cable customers of Cincinnati-based Convergys include Time Warner Cable, Cox Communications, Suddenlink Communications, RCN and Mexico's Cablemás.

Merger Snapshot
Comparison of the two customer-service solutions companies:
Convergys Intervoice
SOURCE: Company reports
BusinessCall-center software and servicesAutomated customer-service software
Annual revenues$2.84 billion (12 mos. ended Dec. 31, 2007)$202.4 million (12 mos. ended Feb. 29)

“This acquisition is part of our plan to be the market leader in relationship-management solutions,” Convergys president and CEO Dave Dougherty said. “We believe acquiring Intervoice allows us to compete more effectively as a single-source provider and enables us to grow our revenues and our earnings.”

Intervoice offers services to more than 5,000 customers in 80 countries. Its “extensive global channel” will provide Convergys a number of cross-selling opportunities in new markets and geographies, according to Convergys.

“Separately, these companies have been strong strategic partners delivering products that have created opportunities for customers like us,” T-Mobile USA chief information officer Robert Strickland said in a statement included as part of the Convergys announcement. “If they come together, we look forward to seeing them continue to build on their ability to bring solutions to the market that place customer relationships at the center.”

Intervoice revenues for its fiscal year ended Feb. 29 were $202.4 million, more than half of which are maintenance and hosted-services revenues that are predictable and recurring, Convergys said.

Under the agreement, Convergys will offer $8.25 per share of Intervoice. The company expects the transaction to close in the third quarter, subject to usual closing conditions, regulatory approvals and the valid tender of two-thirds the outstanding shares of Intervoice common stock.

Convergys intends to initially fund the transaction through existing and new credit facilities and cash on hand. In a conference call with analysts, company executives said they expect to take a one-time charge of $7 million to $10 million in 2008 related to the acquisition.

Convergys provides software and services to customers in more than 70 countries in 35 languages. The company has 75,000 employees in 87 customer-contact centers and other facilities.

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