IBasis Sells Speech Solutions Ops To Convergys For $17M
DOW JONES NEWSWIRES
IBasis Inc. sold its speech solutions business to Convergys Corp. (CVG) for $17 million in cash, and said it expects to record a second quarter loss from discontinued operations of about $59 million from the transaction.
IBasis can received an additional $1.5 million that was placed in escrow and up to $16 million more from an earn-out payments based on milestones. The earn-out period ends Dec. 31, 2003.
In a press release Monday, IBasis said it plans to focus on its core business of wholesale international telephony.
The provider of Internet-based voice communications said the sale and a recent 18% workforce reduction in its core Internet telephony business reduced the total staff to 215. At Dec. 31, the company employed 441, according to its annual report.
IBasis lost $66.8 million, or $1.52 a share, on revenue of $34.3 million for the second quarter ended June 30, 2001. The period's loss before acquisition, stock compensation and restructuring costs totaled $21.7 million, or 49 cents a share.
IBasis officials weren't immediately available to provide additional information.
IBasis sold data centers, about 40 customers, revenue streams and customer prospects to Convergys. IBasis also transferred about 130 employees to the Cincinnati provider of billing and customer care services, which has a worldwide staff of more than 45,000.
Convergys said the deal provides it with added capabilities in advanced customer self-service application development and hosting.
Convergys' New York Stock Exchange-listed shares recently fell 1.8%, or 29 cents, to $15.99, on composite volume of about 404,200 shares. Average daily volume of 1.2 million shares.
Shares of IBasis recently changed hands at 55 cents, unchanged from Friday's close, on Nasdaq volume of 61,200 shares. Average daily volume if 167,086. |
