Billing and customer-service systems vendor Convergys announced a definitive agreement to sell its information-management business -- which includes solutions for cable, satellite and telco operators -- for $449 million in cash to Japan's NEC.
The transaction covers all of the Convergys Information Management business, including its Smart Revenue Solutions for the telecommunications, cable, satellite, broadband, utilities and logistics markets.
Cable companies that use Convergys' ICOMS billing system include Time Warner Cable, Cox Communications and the U.K.'s Virgin Media. For full-year 2011, the Convergys Information Management unit had revenue of $328.8 million, down 3% from the year prior, with operating income of $37.2 million (up 12% year-over-year).
"NEC's established position in the industry, global scale, and commitment to invest in the business will benefit the customers and employees of IM," Convergys president and CEO Jeff Fox said in a statement.
NEC president Nobuhiro Endo added, "Convergys' IM business has distinguished itself with a record of successful BSS [business support systems] implementations and exceptional professional services for leading international communications carriers. The acquisition of the IM business will enable NEC to bring even greater value and benefits to the service provider industry."
Cincinnati-based Convergys expects the transaction to be completed by late second quarter of 2012, subject to regulatory approvals and other closing conditions.
Centerview Partners LLC was the financial advisor and Wachtell, Lipton, Rosen & Katz was the legal advisor for Convergys in the transaction.
