Convergys to buy learning services company
The company signs an agreement to acquire DigitalThink for about $120 million.
Convergys, which provides billing and other outsourced services, on Thursday said it signed an agreement to buy learning services company DigitalThink for about $120 million. Cincinnati-based Convergys said it is paying $2.40 for each DigitalThink share, which amounts to a 30 percent premium over DigitalThink's closing price Wednesday. San Francisco-based DigitalThink's offerings include consulting services and custom online course development. DigitalThink's largest customer was technology services giant Electronic Data Systems, but due to a recent contract dispute, EDS is no longer a client, according to Convergys. DigitalThink has about 375 employees and reported a net loss of $3.1 million for the quarter ended Dec. 31.
Convergys, which has more than 55,000 employees, said its "outsourced learning capabilities will enable global organizations to improve skills and productivity for their work force through Web-based courses and simulation training."