Convergys Corp.’s Information Management Group may find itself an independent entity soon if the evaluation process now underway determines it best for the company.
Convergys, a global provider of billing and relationship management solutions and services, announced this week that its board of directors and senior management team are evaluating a potential separation of the company’s Information Management business from the remaining parts of Convergys.
The intent is to create two strong, independent, publicly traded companies, each focused on its own set of business opportunities. The board has retained Centerview Partners as its financial advisor to assist in this process. Convergys anticipates that the board of directors and the senior management team will review the results of this evaluation and make a decision during the fourth quarter.
“This evaluation is a part of our plan to align the company’s assets and capabilities with our leadership in relationship management and to unlock value for shareholders,” said Dave Dougherty, Convergys president and CEO. “We believe it’s prudent to consider separating Information Management into an independent entity as a means of enhancing the strength and focus of each of our businesses to better serve our clients, provide more opportunities for our employees, and bolster each business’ competitive position.”
Convergys noted that the evaluation process would not necessarily result in changes to the company’s current corporate structure.
Meanwhile, Convergys announced today that it has accepted all shares that were tendered into its offer to purchase all outstanding common stock of Intervoice, Inc.
As of the expiration of the offer, approximately 81 percent of Intervoice’s outstanding shares were tendered by delivery of stock certificates and approximately 11 percent were tendered pursuant to notices of guaranteed delivery. Certificates for most of the shares tendered by guaranteed delivery have already been delivered to Convergys. As of the close of business yesterday, Convergys had received and purchased share certificates representing approximately 89 percent of Intervoice’s outstanding shares.
Convergys anticipates that enough additional shares will be purchased today to enable Convergys to complete the acquisition of Intervoice either later today or by tomorrow.
All other conditions for closing have been met. All Intervoice shares that were not purchased in the tender offer will be converted into $8.25 per share upon completion of the merger.
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