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Convergys
Convergys
Convergys
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Convergys Corporation was a corporation based in Cincinnati, Ohio, that sold customer management and information management products, primarily to large corporations. Customer management products included agent assisted, self-service and care software tailored to the communications, financial services, technology, retail, healthcare and government markets. Information management provided convergent billing and business support system (BSS) products and services including revenue management, product and order management, and customer care management to telecom, utilities, and cable/satellite/broadband service providers. They had approximately 130,000 employees across 33 countries.

Key Information

History

[edit]
One of the Convergys offices in Gurgaon, India

The company grew from Cincinnati Bell Information Systems and MATRIXX, both subsidiaries of Cincinnati Bell, and AT&T Solutions Customer Care (formerly AT&T American Transtech), which was sold to Cincinnati Bell in 1998;[2] an IPO in August 1998 made it a fully independent company.[3] Since then, Convergys' headquarters in Cincinnati, Ohio, has acquired numerous companies.

On July 1, 2002, Convergys announced[4] the purchase of the iBasis Speech Solutions line of business (formerly Price Interactive) from iBasis Inc. for $17 million in order to enhance its Interactive Voice Response (IVR) and Advanced Speech Recognition (ASR) solutions.

Iт 2003, Convergys opened two call centres in the Philippines. The Philippines, along with India, was chosen by then president of the company, Jack Freker, for the company’s global expansion.[5]

In 2004, Convergys bought DigitalThink for $120 million.[6] DigitalThink helped Convergys expand its human resources outsourcing business.

On November 4, 2004 Convergys announced they had acquired Finali, a Westminster, Colorado based company, for $25 million in cash.[7] Finali provided integrated customer support and sales support management services for e-commerce sites.

Convergys acquired Intervoice, a Dallas-based telecommunications company, in 2008 for $335 million.[8]

Convergys sold its Human Resources Management line of business to NorthgateArinso in March 2010.[9]

On March 22, 2012, Japanese technology firm NEC announced it would buy the Information Management Business of Convergys for approximately $449 million.[10] In 2012, Convergys Philippines, 8 years after its entry into the country established 18 centers with 26,000 employees in all, was named “BPO Employer of the Year” at the annual International ICT Awards.[11]

On April 3, 2013, Convergys completed the acquisition of New Zealand-based Datacom call center operations in Kuala Lumpur and Manila for $20 million.[12]

On January 6, 2015, Convergys and Stream Global Services announced entry into a definitive merger. Under the agreement, Convergys would acquire Stream for a total enterprise value of $820 million in cash.[13] On March 3, 2014, Convergys completed the acquisition of Stream creating the 2nd largest BPO provider in the outsourcing industry. The merger brought their total employees to approximately 125,000 with 150 centers in 31 countries supporting 47 languages.[14]

In August 2016, Convergys acquired the buw Holding group.[15]

Synnex acquisition

[edit]

On June 28, 2018, Convergys and Synnex announced they had reached a definitive agreement in which Synnex would acquire Convergys for $2.43 billion in combined stock and cash, and integrate it with Concentrix.

On October 5, 2018, Convergys and Synnex announced that they had completed the merger.[16]

References

[edit]
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Convergys

View on Grokipedia
from Grokipedia
Convergys Corporation was an American multinational (BPO) company specializing in management services. Founded in as a spin-off from Bell Inc., it combined the firm's billing, information systems, and marketing services divisions into a standalone entity focused on outsourced interactions. Headquartered in , , Convergys provided a range of services including care, , billing and collections, , and end-to-end sales support, serving clients across industries such as , , retail, and . As of June 2018, the company employed approximately 110,000 people in more than 125 delivery centers spanning 33 countries, delivering services in 58 languages to enhance client- relationships globally. Convergys grew through strategic acquisitions, such as Intervoice in 2008 for , expanding its capabilities in voice, digital, and back-office operations. In 2018, Corporation announced its acquisition of Convergys for approximately $2.4 billion in a cash-and-stock deal, integrating it with SYNNEX's subsidiary to form the world's second-largest services provider with combined annual revenues exceeding $4.7 billion. The merger closed on October 5, 2018, after which Convergys operated as part of until fully integrated, marking the end of its independent existence.

Company Overview

Founding and Headquarters

Convergys Corporation was established in 1998 as an corporation through a of Bell Inc., combining its subsidiaries Bell Information Systems, which provided billing and customer care services for the , and MATRIXX Marketing Inc., a provider of outsourced customer management solutions. Earlier that year, in March 1998, MATRIXX had acquired Solutions Customer Care—a unit specializing in —for $625 million, integrating it into the new entity's operations and marking Convergys' emergence as an independent firm focused on customer management . The company went public through an (IPO) on August 12, 1998, on the under the CVG, which preceded a full spin-off from Cincinnati Bell and solidified its status as a standalone publicly traded entity with initial revenues approaching $1 billion and approximately 30,000 employees. From inception, Convergys emphasized outsourced services in billing, customer care, and related areas for communications and other sectors. Convergys maintained its headquarters at 201 East Fourth Street in , , which served as the central hub for executive operations, strategic decision-making, and throughout its independent existence until its acquisition in 2018. This location underscored the company's roots in the region's heritage while supporting its growth into broader solutions.

Services and Target Industries

Convergys specialized in customer management outsourcing, offering a range of agent-assisted services such as customer care, , collections, sales, and to help clients manage interactions across voice, chat, , , and channels. These services were designed to enhance and loyalty, for instance, by providing specialized support that addressed billing inquiries and service disruptions for providers like , which accounted for 16.8% of Convergys' 2017 revenue. The company also provided self-service solutions, including and tools, alongside care software platforms for , enterprise feedback management, and voice-of-the-customer programs to optimize digital channels and segment interactions. In addition, Convergys offered billing systems and as part of its portfolio, enabling clients to modernize for , order processing, and payment handling, which improved by reducing costs and enriching relationships. Prior to its divestiture, Convergys' service portfolio included an division that provided convergent billing and , such as Smart Revenue Solutions, across sectors like communications and utilities to support management and prevention. This positioned Convergys as a leader in before refocusing on core solutions. Convergys targeted industries including communications and media, , , retail, healthcare, and , delivering tailored solutions to meet specific needs like compliance in or secure data handling in operations. For example, in the sector, its collections and detection services helped banks mitigate risks and retain customers through proactive support, while in retail, omni-channel customer care improved satisfaction and drove sales efficiency for platforms. In healthcare, services focused on patient engagement and appointment management to enhance retention, and in , outsourcing streamlined product troubleshooting for device manufacturers. These offerings were globally delivered to support client .

Historical Development

Inception and Early Growth

Convergys Corporation was established in through a spin-off from Cincinnati Bell Inc., integrating the operations of its subsidiaries Cincinnati Bell Information Systems (CBIS), which handled billing and directory services, and MATRIXX, focused on customer management solutions. This formation also incorporated assets from AT&T's customer management services unit, acquired by Cincinnati Bell in December 1997 for $625 million, enabling Convergys to unify customer care and billing platforms derived from both Cincinnati Bell's legacy systems and AT&T's customer management expertise. The spin-off was preceded by an (IPO) in August , where Convergys raised $195 million by selling 13 million shares at $15 each on the , marking its entry as an independent entity with initial annual revenues of $1.45 billion and around 30,000 employees. Following the IPO, Convergys encountered challenges from the late-1990s economic expansion giving way to the early slowdown, including the dot-com bust and reduced demand for amid telecom sector volatility. To address these, the company pursued strategies centered on operational integration and cost efficiencies, such as consolidating the disparate Bell and AT&T-derived systems into a cohesive customer platform that streamlined billing and support services. Margin improvements were a key focus; for instance, the customer management group (CMG) segment's rose from 6.3% in the second quarter of 1998 to 12.8% by the second quarter of 2001 through process optimizations and scale efficiencies. These efforts helped mitigate post-IPO pressures, including integration complexities and market uncertainties, positioning Convergys for sustained operations. Early revenue growth was driven primarily by core outsourcing contracts in and , where Convergys leveraged its integrated platform to serve large clients with high-volume customer interactions. From 1998 to 1999, annual revenues increased 22% to $1.76 billion, fueled by expanded telecom billing and sector deals that capitalized on the company's established . By 2001, quarterly revenues reached $577.8 million, a 13% year-over-year rise, with accounting for the majority of growth through contracts like multi-year customer care agreements. This period solidified Convergys as a prominent player in call center and billing , particularly in telecom where it managed complex, high-scale operations for major carriers. In the late and early , Convergys began initial expansions into digital solutions to complement its core, developing platforms like the Atlys billing system for advanced in telecom. A pivotal step was the 2001 contract with Orange for Atlys implementation, which enhanced digital billing capabilities and set the foundation for broader technological offerings. These moves, supported by internal R&D and targeted investments, transitioned Convergys toward integrated digital , anticipating shifts in client needs beyond traditional call centers while building on its early momentum.

Key Acquisitions and Expansions

In the early , Convergys pursued targeted acquisitions to bolster its technological capabilities in customer management services. A pivotal move came in 2002 when the company acquired the iBasis Speech Solutions line of business from iBasis Inc. for $17 million in cash, plus $1.5 million in . This acquisition integrated advanced technologies into Convergys' customer interaction platforms, enabling more natural and efficient voice-based support systems that improved automation in call centers. Building on this foundation, Convergys expanded into workforce development solutions in by purchasing DigitalThink, a San Francisco-based e-learning provider, for $120 million in cash at $2.40 per share. The deal enhanced Convergys' outsourcing offerings by incorporating DigitalThink's online training platforms, which allowed clients to deliver scalable, customized learning programs to their employees and thereby strengthen overall service delivery in customer care operations. By the late 2000s, Convergys focused on deepening its contact center technologies through the 2008 acquisition of Intervoice Inc., a Dallas-based provider of voice systems, for $335 million in cash at $8.25 per share. This strategic purchase fortified Convergys' (IVR) and capabilities, integrating Intervoice's speech and video solutions to create more sophisticated, multi-channel tools that supported global operations. In a major consolidation effort during the , Convergys acquired in 2014 for an enterprise value of $820 million in cash, a deal announced in and completed in . The acquisition added Stream's expertise in and multilingual services across 28 countries, significantly scaling Convergys' operational footprint and enabling broader coverage for complex, industry-specific customer management needs. These acquisitions collectively enhanced Convergys' service portfolio in areas such as speech technologies, training, and global support, as detailed in its target industries overview.

Divestitures and Strategic Shifts

In 2010, Convergys sold its management (HRM) business to NorthgateArinso for $100 million, consisting of $85 million in cash at closing and $15 million payable over three years. The transaction, announced on March 4 and completed in June, involved the transfer of approximately 2,300 employees and the entire HRM customer portfolio, which generated about $250 million in annual revenue. This divestiture enabled Convergys to streamline its operations by concentrating resources on its core customer management and segments, aligning with a broader effort to enhance efficiency in customer-facing services. Two years later, in 2012, Convergys divested its (IM) Group to Corporation for $449 million in cash. Announced on March 22 and finalized on May 16, the deal encompassed the full IM portfolio, including Smart Revenue Solutions for , utilities, and sectors. By offloading this unit, Convergys aimed to sharpen its emphasis on (BPO) competencies, particularly in high-value areas like billing and applications. These divestitures collectively bolstered Convergys' financial position through significant cash inflows totaling approximately $549 million, providing greater flexibility for investments in its primary operations and shareholder returns. The strategic refocus on core BPO services, especially customer management, improved and positioned the company to prioritize higher-margin activities in preparation for future growth opportunities.

Operational Scope

Global Presence and Facilities

Convergys maintained an extensive international footprint, operating in 31 countries with more than 150 locations as of , enabling seamless delivery of customer management services across diverse geographies. The company's major operational hubs were concentrated in , where its headquarters in , , oversaw core activities; , supporting multilingual engagements; Asia-Pacific, leveraging cost advantages in high-volume processing; and , facilitating nearshore support for regional clients. This distributed network allowed Convergys to interact with clients' customers in 58 languages, optimizing response times and cultural alignment. Key facilities included large-scale contact centers in the , serving as primary offshore hubs for English-speaking and multilingual support due to the region's skilled workforce and lower operational costs. In , centers in Delhi-NCR, , , and Bangalore handled complex customer interactions, capitalizing on the country's technical talent pool for and clients. United States-based facilities, including those in and other states, focused on domestic high-priority engagements, ensuring compliance and rapid escalation capabilities. These sites were strategically selected to provide cost-effective, scalable support while maintaining quality standards. Convergys invested in advanced across its global centers, integrating platforms to manage high-volume interactions efficiently. State-of-the-art facilities, such as the one in Heredia, , featured modern layouts and digital tools to enhance agent and service delivery. These -enabled environments supported automated workflows and real-time , allowing the company to scale operations globally without compromising on interaction quality.

Workforce and Organizational Structure

At its peak in 2015, Convergys employed approximately 130,000 people worldwide, with the vast majority serving in positions such as sales representatives, specialists, retention agents, and collections personnel across its network of contact centers. These roles were essential to the company's model, enabling it to manage high-volume customer interactions for clients in , , and retail sectors. The organizational structure of Convergys was organized around core functional divisions to support its outsourcing operations. The Management division formed the backbone, delivering front-line services including inbound and outbound care, order management, and back-office support. Complementing this was the Technology Solutions division, which provided advanced tools like platforms, multichannel interaction software, and consulting for optimizing customer journeys. Regional operations were structured to oversee delivery in key geographies, including , , , the , (EMEA), and , ensuring localized compliance and efficiency. Leadership of Convergys during this period was headed by Andrea J. Ayers, who served as President and Chief Executive Officer starting in November 2012, guiding the company through expansions and operational refinements. To maintain service quality, Convergys invested in initiatives for its agents. These programs aimed to equip the workforce to handle complex, multilingual customer contacts effectively.

Acquisition and Integration

Deal Announcement and Terms

On June 28, 2018, Corporation announced a definitive agreement to acquire Convergys Corporation through its division in a cash-and-stock transaction valued at approximately $2.43 billion. Under the terms, Convergys shareholders would receive $13.25 per share in cash and 0.1193 shares of for each share of Convergys , equating to a total value of $26.50 per share, subject to a two-way collar mechanism to mitigate stock price volatility. The deal was financed through a combination of cash on hand, debt financing, and , with committed financing secured to support the transaction. The strategic rationale for the acquisition centered on combining the complementary strengths of and Convergys to form a leading global services provider, positioning the combined entity as the second-largest in the industry with approximately $4.7 billion in annual and enhanced capabilities in digital customer experience solutions. This merger was expected to expand the company's global footprint, add scale in key markets, and drive synergies through integrated operations, while leveraging Convergys' established position serving Fortune 100 clients across industries like and . The transaction required approvals from both companies' shareholders and relevant regulatory authorities, including antitrust clearances. Shareholder meetings for both and Convergys were held on , , where the acquisition received overwhelming approval from Convergys shareholders. All necessary regulatory approvals were obtained without significant conditions, enabling the deal to close on October 5, 2018.

Merger with Concentrix and Aftermath

The acquisition of Convergys by , a subsidiary of , officially closed on October 5, 2018, following shareholder approvals and regulatory clearances. This transaction resulted in the full integration of Convergys' operations into , effectively dissolving Convergys as an independent entity and merging its assets, including customer contracts and workforce, under the umbrella. In the immediate aftermath, initiated a phased rebranding process, beginning with co-branded campaigns on the closing date to raise awareness of the merger while gradually phasing out the Convergys brand identity across communications and operations. Facilities previously operated under Convergys were consolidated and reoriented under the banner, streamlining administrative functions and aligning them with ' technology-driven infrastructure. This consolidation unified service offerings in (CX) , combining Convergys' strengths in voice-based with ' digital and analytics capabilities, thereby expanding the combined entity's global footprint to over 275 locations serving clients in more than 70 languages and positioning it as the second-largest provider in the sector. As of 2025, Convergys' legacy assets continue to contribute to ' growth, with its integrated technologies and client relationships supporting ongoing expansions in CX solutions, as reflected in Concentrix' fiscal reporting. Recent SEC filings, including those from late 2024 extending into 2025 disclosures, reference legacy Convergys elements such as severance benefits and equity awards, underscoring the enduring operational integration. No independent Convergys brand persists, with all activities fully subsumed under , which has since spun off from in 2020 and pursued further acquisitions to build on this foundation.

References

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