Convergys to buy Stream for P36-B
MANILA, Philippines – Convergys Corporation is set to acquire Stream Global Services for an estimated P36 billion ($820 million), creating the second largest customer management services provider in the world.
Under the definitive merger agreement, Convergys will acquire Stream in cash from funds managed by Ares Management and Providence Equity Partners, as well as from LiveIt, the BPO investment arm of Ayala Corp.
Convergys expects the acquisition to expand and strengthen its US and global presence in the outsourced customer management services industry.
The merger is expected to gain revenue of $3 billion and approximately 125,000 employees (including more than 53,000 in the Philippines).
Ayala Corp., meanwhile, expects a net gain of an estimated P2 billion ($46 million) through LiveIt.
"Our partners and we are pleased with this transaction, which we believe has strong strategic rationale. We are very proud of the Stream team, and grateful to the thousands of individuals who helped build it from an industry pioneer into a global leader,” said Livelt chief executive Fred Ayala.
“We believe that the global IT-BPO industry will continue to expand, particularly in the Philippines, where we expect it to remain one of the country's top generators of new jobs. Consequently, we are continuing to build our investee companies in the high growth segments of the industry, and starting to invest in the Education space, which we see as a critical enabler of the IT-BPO industry, given its ever increasing demand for well-trained Filipino talent,” he added.