Press release from Business Wire
Convergys Announces Early Termination of Hart-Scott-Rodino Waiting Period for Acquisition of Stream
Friday, January 24, 2014
Convergys Announces Early Termination of Hart-Scott-Rodino Waiting Period for Acquisition of Stream08:10 EST Friday, January 24, 2014
CINCINNATI (Business Wire) -- Convergys Corporation (“Convergys”) (NYSE: CVG) today announced that it has received notice of the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, in connection with its proposed acquisition of SGS Holdings, Inc. (“Stream”), the holding company of Stream Global Services, Inc.. The waiting period was scheduled to expire on February 10, 2014.
As announced on January 6, Convergys and Stream entered into a definitive merger agreement under which Convergys will acquire Stream for a total enterprise value of $820 million in cash, subject to certain adjustments, from funds managed by Ares Management and Providence Equity Partners, as well as from LiveIt, the Business Process Outsourcing investment arm of Ayala Corp. The termination of the waiting period, which is effective as of January 22, satisfies one of the conditions to closing the transaction. Subject to the satisfaction of other customary conditions, the transaction is expected to close in the first quarter of 2014.
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 is a leading global business process outsource (BPO) service provider specializing in customer relationship management, including technical support, customer care and sales, for Fortune 1000 companies. Stream is a trusted partner to some of the world's leading technology, computing, telecommunications, retail, entertainment/media, and financial services companies. Stream's service programs are delivered through a set of standardized best practices and sophisticated technologies by a highly skilled multilingual workforce of over 40,000 employees capable of supporting over 35 languages across approximately 56 service centers in 22 countries. Stream strives to expand its global presence and service offerings to increase revenue, improve operational efficiencies and drive brand loyalty for its clients. For more information, visit www.stream.com.
(Stream and the Stream logo are registered trademarks of Stream Global Services, Inc.)
As a leader in customer management for over 30 years, Convergys is uniquely focused on helping companies find new ways to enhance the value of their customer relationships and deliver consistent customer experiences across all channels and geographies. Every day, over 80,000 employees help our clients balance the demands of increasing revenue, improving customer satisfaction, and reducing overall cost using an optimal mix of agent, technology, and analytics solutions. Our actionable insight stems from handling billions of customer interactions annually for our clients. Visit www.convergys.com to learn more.
(Convergys and the Convergys logo are registered trademarks of Convergys Corporation.)
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This press release contains forward-looking statements concerning the expected timing, completion and effects of the proposed transaction and all other statements in this release, other than historical facts, constitute “forward-looking statements” as defined under U.S. federal securities laws. In some cases, one can identify forward-looking statements by terminology such as “will,” “expect,” “estimate,” “think,” “forecast,” “guidance, “outlook,” “plan,” “lead,” “project” or other comparable terminology. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks include, but are not limited to: (i) the ability of the parties to satisfy the conditions precedent and consummate the proposed transaction; (ii) the timing of consummation of the proposed transaction; (iii) the ability of the parties to secure regulatory approvals in a timely manner or on the terms desired or anticipated; (iv) the ability of Convergys to integrate the acquired operations, implement the anticipated business plans of the combined company following closing and achieve anticipated benefits and cost savings; (v) risks related to disruption of management's attention from ongoing business operations due to the pending transaction; (vi) the effect of the announcement of the proposed transaction on either party's relationships with its respective customers, vendors, lenders, operating results and businesses generally; and (vii) those factors contained in our periodic reports filed with the SEC, including in the “Risk Factors” section of our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The forward-looking information in this document is given as of the date of the particular statement and we assume no duty to update this information. Our filings and other important information are also available on the investor relations page of our web site at www.convergys.com.
David Stein, Investor Relations, +1 513-723-7768
Krista Boyle, Public/Media Relations, +1 513-723-2061