Convergys Will Acquire Stream for $820 Million
Convergys yesterday announced plans to acquire Stream Global Services, a fellow provider of customer management services, for $820 million.
By adding Stream's client base, geographic footprint, and service capabilities, Convergys expects the acquisition to expand and strengthen its U.S. 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 serves a number of companies in the technology, computing, telecommunications, retail, entertainment/media, and financial services industries.
By integrating Stream's delivery capacity in the Americas, Europe, Asia-Pacific, Middle East, and Africa, Convergys expects to extend its geographic reach, breadth of languages and service capabilities. Stream's in-country language skills across Europe and Latin America are expected to provide Convergys with augmented solution offerings for multinational clients in the United States and around the globe.
Once the transaction is complete, Convergys expects to have approximately 125,000 employees serving clients in 35 languages from more than 135 contact centers in 25 countries.
"This acquisition is an important step forward in our plan for strategic growth and value creation," said Andrea Ayers, president and CEO of Convergys, in a statement. "Both Convergys and Stream have a history of commitment to our clients and dedication to excellence in representing the world's largest brands.
"We believe this combination will strengthen Convergys by diversifying our client base and enabling us to offer a wider range of customer transactions in a more cost effective manner from multiple geographies, at scale. Our plan is to build upon the best practices and management teams from both companies to deliver superior customer benefits and enhanced value for our clients and shareholders, and provide new opportunities for our employees," Ayers said.