NorthgateArinso, a KKR portfolio company that provides HR software and services, has completed its previously-announced acquisition of the HR management unit of Convergys (NYSE: CVG). The deal is valued at $100 million in cash, including an $85 million up-front payment.
NIS Holdings SARL (Northgate) is pleased to announce that it has completed its acquisition of the HR Management division of Convergys (NYSE: CVG), a publicly-held company headquartered in Cincinnati, Ohio and a global leader in relationship management. This business will be integrated into NorthgateArinso, the Northgate division that is a world leader in Human Resources (HR) software and services.
Funding for the acquisition has been provided by additional equity funding from funds managed by KKR, the majority shareholder in Northgate.
NorthgateArinso announced its intention to acquire the HRM division of Convergys on March 4, 2010. The acquisition supports the company’s growth strategy and goal to be the number one focused provider of HR software and services globally, and substantially boosts its North American operations. The division now employs 8,000 people in 35 countries worldwide, of which a third are based in North America. Total Northgate Group employees now exceed 12,000.
Following the completion of the acquisition the division will move its North American headquarters from Atlanta to the former Convergys facility in Jacksonville, Florida. Trey Campbell will continue to lead the combined NorthgateArinso North American operations.
The expanded company will give organizations worldwide access to a complete portfolio of HR services, from payroll to talent management, delivered via the model that best suits their business needs: OnPremise, OnDemand, BPO (Business Process Outsourcing), or any combination thereof. Customers will continue to benefit from NorthgateArinso’s global delivery model and consultancy expertise, as well as its focus on innovation and commitment to delivering superior customer value.
“This deal is an important part of our plans to build the world’s number one provider of HR services, building on our existing strength and our focus on delivering excellent value for customers. Completing this deal today takes us a step closer to achieving that,” said Mike Ettling, Chief Executive of NorthgateArinso. “Since we announced the intention to acquire the HR Management division of Convergys we’ve received very positive feedback from customers and the wider marketplace.”
“Through the acquisition of Convergys’ HRM division, we’ve brought together great people, great technology and a world-class delivery model. This is a big step forwards in our mission to continually challenge, improve and transform how HR is delivered worldwide,” added Ettling.
NorthgateArinso is a leading global Human Resources software and services provider offering innovative HR business solutions to employers of all sizes, including global Fortune 500 companies and many public sector organizations. NorthgateArinso helps HR executives optimize their HR service delivery through smarter processes and more efficient technology, supporting key HR areas like workforce administration, payroll, benefits, recruitment, learning, and talent management.
NorthgateArinso’s 8,000 employees in 35 countries are dedicated to delivering HR excellence through HR consulting, HR outsourcing and HR technology.