Customer services provider Convergys to buy Stream for $820 million

Customer management services provider Convergys Corp said it would buy rival Stream Global Services Inc for $820 million in cash to expand its client base and international presence.

Shares of Cincinnati, Ohio-based Convergys jumped 20 per cent after the bell after closing at $20.86 on the New York Stock Exchange on Monday.

Convergys said the deal was expected to add 35 cents to profit in the first year following closure of the transaction. The combined company is expected to exceed $3 billion in revenue.

Stream, which has 40,000 employees, provides customer relationship management services in 22 countries. Convergys will have about 125,000 employees following closure of the deal, expected in the first quarter of 2014.

Convergys also stood by its 2013 adjusted profit forecast of $1.10 per share and revenue of $2.05 billion.

Copyright: Thomson Reuters 2014