Convergys To Sell Cellular Interests to AT&T

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Business services outsourcing provider Convergys Corp. has said it will sell its holdings in cellular partnerships in the Cincinnati area to AT&T Inc. for about $320 million in cash.

Convergys received limited partnership interests in Cincinnati SMSA and Cincinnati SMSA Tower Holdings as a result of its 1998 spinoff from Cincinnati Bell Inc. Convergys says the two properties make up the cellular partnerships.

Convergys expects the sale to generate net after-tax proceeds of about $250 million, according to the Associated Press.

Cincinnati SMSA provides wireless communications in central and southwestern Ohio and northern Kentucky. Cincinnati SMSA Tower Holdings is a cellular tower holding company for Cincinnati SMSA.

The companies say regulatory approvals are not required because Dallas-based AT&T is acquiring remaining minority interest in partnerships it already controls. The sale is expected to close in July.

Convergys, which is based in Cincinnati, has nearly 75,000 employees and clients in more than 70 countries, speaking more than 35 languages, from 85 sites across North America, Europe, the Middle East, India and the Philippines, the Pacific rim and Latin America. The company provides customer relationship management (CRM) services, consulting and professional services, billing services, and self-care technology. Most of its clients are companies in the telecommunications, financial services, technology, government, and employee care markets. Among its larger customers is General Motors (GM) and Comcast.

Convergys 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. Convergys' IPO in 1998 made it a fully independent company.

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Tracey Schelmetic is a contributing editor for TechZone360. To read more of Tracey's articles, please visit her columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

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