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Convergys sells human resources line for $100M

Thu, 03/04/2010 - 7:15am
The Associated Press

CINCINNATI (AP) – Convergys Corp., a business services outsourcing provider, said Thursday that it agreed to sell its human resources business to a British outsourcing services company for $100 million.

Convergys said the transaction would allow it to focus on its customer management and information management businesses.

NorthgateArinso, which provides human resources software and services to companies in more than 70 countries, will pay about $85 million at closing and another $15 million over three years. NorthgateArinso has 5,000 staff members and will offer employment to the 2,300 employees of Convergys' human resources business, the companies said.

Convergys provides call center, billing and other customer relations services. Its growth has faltered during the recession. It recently reported a 2009 profit of $77.3 million, down from $92.9 million a year earlier. Revenue edged up to $2.83 billion from $2.79 billion.

The company said the sale of the human resources line would reduce its 2010 earnings from continuing operations to a range of 95 cents to $1.10 per share, compared with a prior forecast of $1.05 to $1.20 per share. Revenue was forecast at $2.35 billion, down from a previous prediction of $2.6 billion.

Analysts predict income of $1.15 per share on revenue of $2.6 billion, according to a Thomson Reuters poll.

Convergys shares fell 21 cents to $12.39 in morning trading.

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