Convergent Group Completes $70 Million Financial Transaction.ENGLEWOOD, Colo.--(BUSINESS WIRE)--Aug. 18, 1999-- Convergent Group, the solutions integrator to the utility and local government markets, has completed a financial transaction valued at more than $70 million. The transaction, led by New York-based InSight Capital Partners, recapitalizes Convergent Group's equity ownership structure. A key part of the restructuring allowed Convergent Group to exercise its option and retire all existing preferred and common shares held by EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. Corporation. As a result of the transaction, Convergent Group is now owned by the firm's employees and a group of investors including InSight, Union Bank of Switzerland (UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System ), Goldman, Sachs & Co. and others. Fleet Bank of Boston has provided a $25 million working credit facility within this transaction. This transaction will help fuel the company's plan to grow and to vigorously expand into global markets for e-commerce and service-level outsourcing. "This is a significant milestone for us," said Glenn Montgomery Glenn Montgomery (born March 31, 1967 in New Orleans, Louisiana) is a former National Football League defensive tackle. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Convergent Group. "This financing agreement will enable us to support the challenges of our customers as they pursue the e-enterprise of the next millennium." "InSight Capital Partners is pleased to welcome the market-dominant solutions integrator to our utility and public sector investment footprint," said InSight's Jerry Murdock. "Convergent Group's reputation and core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
"We were very impressed with Convergent Group's unequaled position and reputation in the markets they serve," said Ms. Hyunja Laskin, of UBS. "The new business environment, driven by the deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of utilities and public services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. worldwide, creates a very attractive opportunity for those companies like Convergent Group that can provide rapid solutions." About Convergent Group Convergent Group leads a new breed of solutions integrators. The company designs, builds and delivers performance-ready solutions for resource planning, and has pioneered techniques for rapid integration of complex applications for managing and improving energy and service delivery. |
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