Convergys acquires Stream Global Services for $820M, +19.9% AH

|About: Convergys Corporation (CVG)|By:, SA News Editor

Convergys (CVG) acquires customer management services provider Stream Global Services for $820M from Ares Management, Providence Equity Partners, and Livelt. The combined entity is expected to generate revenue in excess of $3B, making it the second largest CMS provider globally.

The acquisition is expected to add $0.35 in EPS in the first 12 months after close excluding one-time charges.

Anticipated benefits include an expansion/diversification of Convergys's customer base, a broadening of the company's geographic reach (particularly in Europe and LatAm), and cost synergies (~$25M annually when fully realized).

Conference call at 5pm ET, PR

Shares have surged 19.9% AH.