Convergys Announces that the Sale of Its Minority Interests in the
Cellular Partnerships to AT&T Has Closed
(Cincinnati; July 1, 2011) – – – Convergys Corporation (NYSE: CVG), a global leader in relationship management, announced today that the sale of its interests in the cellular partnerships in the Cincinnati metropolitan area to AT&T for approximately $320 million in cash has closed.
Convergys expects to announce second-quarter results in early August and will update full-year guidance to reflect cellular partnership-related impacts on EBITDA, EPS, and free cash flow. The two companies announced the definitive sale agreement on June 2, 2011.
The equity earnings and cash distribution from the cellular partnerships in the first quarter of 2011 were both $10 million. Under terms of the purchase agreement, Convergys will receive its share of the cash distribution for the second quarter performance, if any. Convergys expects net after-tax cash proceeds from the sale to be approximately $250 million, or $2 per diluted share.
“This transaction simplifies our corporate structure, increases our financial flexibility, and provides investors better visibility into our recurring earnings stream from our operating units,” said Jeff Fox, president and CEO of Convergys.
As a result of its spin-off from Cincinnati Bell Inc. (NYSE: CBB) in 1998, Convergys received a 34% limited partnership interest in Cincinnati SMSA and a 45% limited partnership interest in Cincinnati SMSA Tower Holdings. Together, these two properties are referred to as the “cellular partnerships.”
Convergys Corporation (NYSE: CVG) is a global leader in relationship management. We provide solutions that drive more value from the relationships our clients have with their customers. Convergys turns these everyday interactions into a source of profit and strategic advantage for our clients.
For more than 30 years, our unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to marquee clients all over the world.
Convergys has approximately 70,000 employees in 68 customer contact centers and other facilities in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia, and our global headquarters in Cincinnati, Ohio. For more information, visit www.convergys.com
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