Convergys Corp. Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Convergys Corp. (NYS: CVG) have jumped today by as much as 12% after the company announced it was selling one of its divisions.
So what: Japan's NEC Corp. has agreed to acquire Convergys' information management business for $449 million in cash. The division includes solutions like its smart revenue solutions group, customer care, and billing departments.
Now what: Convergys CEO Jeff Fox said that "the proceeds from the transaction further strengthen our balance sheet and allow us the financial flexibility to invest in our business and return capital to shareholders." The deal is expected to close late in the second quarter, subject to customary conditions.
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