Convergys to buy rival Stream Global from Ares Management, Providence Equity Partners for $820M

January 6
10:33 PM 2014

Ohio-based customer management services provider Convergys Corp. said it would buy rival Stream Global Services Inc. from its private equity owners for $820 million. The deal is aimed at expanding Convergys' client base and international presence.

According to Reuters, Convergys will finance the deal with $400 million cash on hand and a new $350 million term loan. It has already received a commitment letter from creditors Citigroup Global Markets Inc. and Bank of American Merrill Lynch as well as existing credit facilities.

Convergys will buy Stream from private equity firms Ares Management LLC and Providence Equity Partners LLC as well as from LiveIt Investments Ltd. LiveIt is the business process outsourcing arm of Philippine-based conglomerate Ayala Corp., the report said.

Stream's clients include Hewlett-Packard Co., Microsoft Corp., Dell Inc., Inc., Western Digital Corp., and Nike Inc. It provides customer relationship management services in 22 countries in 35 languages and has 40,000 employees, Reuters said.  

Onvergys said that the combined company is expected to exceed $3 billion in revenue. Convergys' top customers include AT&T Inc., Comcast Corp., and DirecTV, the report said.  

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