Convergys Corporation (CVG), has announced a definitive agreement under which Convergys will acquire Germany-based buw for EUR 123 million in cash, subject to certain adjustments. Convergys also announced the transaction is expected to be accretive to Convergys earnings, excluding one-time charges, intangible amortization and integration costs.
By adding buw’s geographic footprint, complementary client base, and German language capabilities, Convergys expects the acquisition to expand its presence in the growing EUR 3 billion German outsourced customer management services industry. As the largest owner-operated customer management company in Germany, buw will bring 16 sites and approximately 6,000 employees spread across Germany, Hungary and Romania into Convergys’ global operations.
buw is a growing and profitable business which generates approximately EUR 150 million annual revenue, providing end-to-end business process outsourcing (BPO) services to leading companies across a wide breadth of industries.
Convergys and buw expect to close the transaction during the third quarter of 2016, subject to the satisfaction of customary closing conditions, including applicable regulatory requirements.
Andrea Ayers, Convergys president and CEO said, “This accretive transaction will increase our capacity to serve the customer management BPO market in Germany, further diversify our marquee client base, and strengthen our relationships with the multinational clients we share.
We believe buw clients will benefit from Convergys’ unique global platform for driving operational excellence, and look forward to helping our new clients maintain exceptional relationships with their customers. We are excited to welcome buw’s talented employees to our company as we continue to create value for our clients and shareholders.”
“In the past 23 years, our company has written a unique success story,” said Jens Bormann and Karsten Wulf, the two founders and owners of buw. “We are convinced we have found the best partner with Convergys. We are proud that buw will join a global industry leader, and one that shares our values. We welcome the opportunities it will provide our employees in pursuit of professional, long-term growth as well as outstanding service to our world-class portfolio of clients,” Bormann and Wulf added.
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