Convergys’ board of directors and senior management team are evaluating a potential separation of the company’s Information Management business from the remaining parts of the company.
The split would create “two strong, independent, publicly traded companies, each focused on its own set of business opportunities,” Convergys said. The board of directors and the senior management team are expected to review the results of this evaluation and make a decision during the fourth quarter of 2008.
“This evaluation is a part of our plan to align the company’s assets and capabilities with our leadership in relationship management and to unlock value for shareholders,” said Dave Dougherty, Convergys’ president and CEO. “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.”
Convergys, which provides outsourced customer care and billing services for nine of the 10 largest cable operators, recently announced that it can help cable operators with the digital transition – not so much with the technology aspect, but with providing the capability for operators to acquire new subscribers, and with simply keeping customers informed and content (story here).
Convergys said that there is no assurance that the evaluation will result in any changes to the company’s current corporate structure.
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