NorthgateArinso plans acquisition of Convergys to develop its global standing

The transaction is worth approximately $85 million in cash at closing and $15 million in cash over three years. It involves NorthgateArinso acquiring the assets, including the global HR service delivery network and entire customer portfolio, of Convergys' HR management division.

Convergys' HR outsourcing customers will benefit from NorthgateArinso's clear focus on HR software and services and from its world-class HR delivery capabilities. NorthgateArinso is known for its innovation in the sector, including the creation of platform-based HR Business Process Outsourcing (BPO).

Speaking about the acquisition, Mike Ettling, CEO at NorthgateArinso, explained: "We are delighted to be combining Convergys' US market leader position with our world-class focus on software and service. We'll be bringing together two great teams of people, with great HR solutions, and investing further around the world to innovate even more for our customers.

"We will be working very closely with Convergys' customers over the next few weeks to ensure they continue to receive the same quality of service and truly understand the benefits of being a customer of the NorthgateArinso family."

On completion of the acquisition, NorthgateArinso will employ around 8,000 people globally, of which a third will be based in North America.

Chris Stone, CEO at Northgate Information Solutions, added: "The US domestic market accounts for over a third of the global HR services market. As it is home to many multinational businesses, it is a critical marketplace for us as a specialist and we expect to strongly develop our position in the US over the coming years."

NorthgateArinso's US operations will continue to be led by Trey Campbell.