Convergys Corp. announced a deal Thursday to sell one of its two operating divisions.
The deal won’t affect its Jacksonville operations, which employ about 1,500 people.
Cincinnati-based Convergys agreed to sell its information management business to NEC Corp. for $449 million in cash.
Convergys spokeswoman Amy Williams said none of the company’s Jacksonville employees work in that division. They work for Convergys’ remaining division, customer management, which provides outsourced customer-service functions for businesses.
Customer management is by far the company’s biggest division, producing revenue of $1.92 billion in 2011. Information management had $329 million in revenue.
Convergys had a third division that provided human resources management services but it sold that in 2010 to NorthgateArinso.
After completing the acquisition, NorthgateArinso moved its North American headquarters to Jacksonville, where it had about 675 employees who formerly worked for Convergys.
Convergys was formed in 1998 as a spinoff company of Cincinnati Bell Inc.
Earlier that year, Cincinnati Bell had acquired the outsourced customer service business that was based in Jacksonville from AT&T.
Convergys said Thursday it expects the sale of the information management division to be completed by the end of the second quarter.
“NEC is acquiring a well-recognized business, with solid client relationships, a strong solutions portfolio, and a very talented base of employees,” Convergys CEO Jeff Fox said in a news release.
“NEC’s established position in the industry, global scale, and commitment to invest in the business will benefit the customers and employees of IM,” Fox said.
“In return, 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,” he said.
Japan-based electronics company NEC said the division will be folded into its NetCracker Technology Corp. subsidiary.
“The acquisition of the IM business will enable NEC to bring even greater value and benefits to the service provider industry,” NEC president Nobuhiro Endo said in a news release.
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