Convergys considers splitting into 2 companies

Outsourcing company Convergys Corp. said Tuesday its board of directors and senior management team are considering separating its information management business into its own publicly traded company.

The company expects to make a decision in the fourth quarter of 2008.

"We believe it's prudent to consider separating information management into an independent entity as a means of enhancing the strength and focus of each of our businesses to better serve our clients, provide more opportunities for our employees, and bolster each business' competitive position," said Dave Dougherty, Convergys' chief executive and president.

The board has retained Centerview Partners as its financial adviser to assist with the evaluation.

Cincinnati-based Convergys has about 75,000 employees in 85 customer contact centers, data centers and other facilities worldwide. The company offers call-center, billing and employee care outsourcing.

In its last earnings report for the three months ended June 30, the company's profit climbed 4 percent even as revenue inched lower. It also lowered its financial outlook for the year due to the effects of the softening economy.

Shares rose 97 cents, or 6.6 percent, to $15.72.

Convergys was spun off 10 years ago from Cincinnati Bell Inc.

The company's information management business includes providing billing services for telecommunications companies such as AT&T Inc. and Cincinnati Bell.

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On the Net:

http://www.convergys.com