In a bid to further enhance their leadership in relationship management, Convergys Corporation has announced it will acquire Intervoice (News
) for $335 million in cash, or $8.25 per share.
The acquisition was approved by both companies Boards of Directors and, after completion of the offer, will include a second-step merger where remaining Intervoice shareholders will receive the same price per share. Convergys (News
) expects the transaction to close in the third quarter of 2008.
This acquisition will bring together Intervoice's leadership and knowledge in software-based IVR, contact center and mobile messaging technology and applications and will expand Convergys' Integrated automated and live agent offerings. This will help Convergys to reduce time to market and have even more differentiation in the automated services market.
“This acquisition is part of our plan to be the market leader in Relationship Management solutions,” said Dave Dougherty, Convergys President and CEO.
“Clients are demanding high-quality, integrated, relationship management solutions, combining both automated and live agent services, to drive more value from their relationships with their customers and employees. We believe acquiring Intervoice allows us to compete more effectively as a single-source provider and enables us to grow our revenues and our earnings. We're very excited about this transaction and the value we expect it to create for our clients and shareholders, as well as the opportunities we expect it to create for Convergys and Intervoice employees.”
Speech technologies provider Intervoice was recognized this year in the leader's quadrant in Gartner (News
), Inc.’s ‘Magic Quadrant for Interactive Voice Response Systems and Enterprise Voice Portals, 2008’ which noted Intervoice for having a "strong track record and experience in delivering IVR and speech applications through packaged applications, complemented by service engagements.”
Also, Convergys is expected to expand its client base and gain cross-selling opportunities thanks to Intervoice's extensive global channel and technology partnerships.
“While Intervoice has performed well independently for 25 years, this transaction should create significant value for our shareholders, new opportunities for our employees, and enhanced ways to drive our customers’ success,” said Robert Ritchey, CEO of Intervoice.
“Convergys is an industry leader that shares our passion for innovative technology and excellence in customer service. We expect our complementary product and services suites to optimize relationship management across all industry segments. We look forward to joining the Convergys team.”
Convergys said they expect the acquisition to "be accretive beginning in 2009 on a non-GAAP basis, excluding amortization and one time costs."