Convergys Corporation will sell its holdings in the "cellular partnerships" located in the Cincinnati metropolitan area to AT&T for approximately $320 million in cash.
As a result of its spin-off from Cincinnati Bell in 1998, Convergys received a 34 percent limited partnership interest in Cincinnati SMSA and a 45 percent limited partnership interest in Cincinnati SMSA Tower Holdings. Together, these two properties are referred to as the "cellular partnerships." Cincinnati SMSA provides wireless communications in central and southwestern Ohio and northern Kentucky, while Cincinnati SMSA Tower Holdings is a cellular tower holding company for Cincinnati SMSA.
AT&T is the general partner, managing all the cellular partnerships’ business on a day-to-day basis. Convergys does not take part in this management.
“Financially and operationally, it makes sense for AT&T to purchase Convergys’ minority stake in our Cincinnati wireless operations,” said Larry Evans, VP and general manager of AT&T Ohio and Western Pennsylvania, in a statement. “We remain committed to providing a great experience to all our wireless customers in the Cincinnati area and throughout Ohio and Kentucky.”
Since AT&T is merely acquiring the remaining minority interest in partnerships it already controls, regulatory approvals are not required, and the companies expect the sale to close in early July, 2011.