NorthgateArinso Acquires Convergys' HR Management Division

NorthgateArinso, a human resources software and services provider, has strengthened its global position by acquiring the HR Management division of Convergys (News - Alert), a global provider in relationship management solutions.


The transaction is worth approximately $85 million in cash at closing and $15 million in cash over three years. It involves NorthgateArinso acquiring the assets, including the global HR service delivery network and entire customer portfolio, of Convergys' HR Management division. NorthgateArinso's American operations will continue to be led by Trey Campbell.

Speaking about the acquisition, Mike Ettling, CEO NorthgateArinso, said 'We are delighted to be combining Convergys' US market leader position with our world-class focus on software and service. We'll be bringing together two great teams of people, with great HR solutions, and investing further around the world to innovate even more for our customers. We will be working very closely with Convergys' customers over the next few weeks to ensure they continue to receive the same quality of service and truly understand the benefits of being a customer of the NorthgateArinso family.'

On completion of acquisition, NorthgateArinso will employ around 8,000 people globally, of which a third will be based in North America.

Chris Stone, CEO at Northgate Information Solutions, added: 'The US domestic market accounts for over a third of the global HR services market. As it is home to many multinational businesses, it is a critical marketplace for us as a specialist and we expect to strongly develop our position in the US over the coming years.'

Convergys' HR outsourcing customers will benefit from NorthgateArinso's clear focus on HR software and services and from its world-class HR delivery capabilities. NorthgateArinso is known for its innovation in the sector, including the creation of platform-based HR Business Process Outsourcing (BPO).

It offers innovative HR business solutions to employers of all sizes, including Global Fortune 500 companies and many Public Sector organizations. In February 2010, NorthgateArinso acquired Neller, an Australia-based developer and marketer of software and services to support HR and payroll professionals.

NorthgateArinso helps HR executives optimize their HR service delivery through smarter process and more efficient technology, supporting key HR areas like workforce administration, payroll, benefits, recruitment, learning, and talent management. NorthgateArinso's approximately 5,000 staff members serve more than 20 percent of the FORTUNE Global 500 companies, and it is one of the five largest HR service providers in the world.