Convergys Corp., a provider of business outsourcing services, yesterday said it has agreed to buy Intervoice Inc., a maker of automated voice response systems, for $335 million in cash.

The offer price of $8.25 a share represents a 24 per cent premium to Intervoice's Tuesday closing price of $6.67 and values Intervoice at more than 18 times estimated 2009 earnings. Following the completion of the initial tender offer, remaining Intervoice shareholders will be paid the same price for their shares.

In pre-market trading, shares of Intervoice spiked $1.48, or 22.2 per cent, to $8.15. The stock has ranged from $5.10 to $11.03 over the past year.

In a conference call with analysts, Convergys said it expected to take an acquisition-related one-time charge of $7 million to $10 million in 2008.

With 87 call centers and about 75,000 employees, Convergys is the largest teleservices business in the US. Among its customers is T-Mobile USA, which endorsed the deal.

Convergys said that by integrating Dallas-based Intervoice's speech automation, Web self-care, and mobile applications, Convergys would be able to offer an array of automated and live agent services.

"This acquisition is part of our plan to be the market leader in relationship management solutions," said Dave Dougherty, president and CEO of Cincinnati-based Convergys.

Convergys expects the deal to close in the third quarter and to start adding to earnings next year, excluding amortization and one-time costs. It plans to initially fund it through existing and new credit facilities and cash on hand.

Intervoice had revenues of $202.4 million for the fiscal year that ended 28 February 2008. It has customers in 80 countries in industries like financial services, health care, retail, manufacturing, telecommunications utilities and transportation. Those, along with Intervoice's partnerships and sales offices, will give Convergys cross-selling opportunities, as well as access to new markets.

Convergys is a multi-national corporation that provides relationship management solutions, outsourced customer and HR management solutions, consulting and professional services, billing services, and multi-channel self-care technology solutions to its clients. Most of its clients are companies in the telecommunications, financial services, technology, government, and employee care markets.

Convergys had annual revenues of $2.84 billion in 2007 and expects revenue of $2.85 billion to $3 billion for the current year.