UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
 Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 28, 2005 (July 22, 2005)

                     Conversion Services International, Inc.
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             (Exact name of registrant as specified in its charter)

           Delaware                 0-30420                    20-1010495
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 (State or other jurisdiction      (Commission                (IRS Employer
       of incorporation)           File Number)             Identification No.)

      100 Eagle Rock Avenue, East Hanover,
                  New Jersey                                     07936
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     (Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code:  (973) 560-9400
                                                     ---------------------------

                                 Not Applicable
               ---------------------------------------------------
          (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation to the registrant under any of the
following provisions:

|_|   Written  communications  pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

|_|   Pre-commencement  communications  pursuant  to  Rule  14d-2(b)  under  the
      Exchange Act (17 CFR 240.14d-2(b))

|_|   Pre-commencement  communications  pursuant  to  Rule  13e-4(c)  under  the
      Exchange Act (17 CFR 240.13e-4(c))



Item 1.01. Entry into Material Definitive Agreement.

On July 22, 2005 ("Closing Date"),  Conversion Services  International,  Inc., a
Delaware   corporation  (the  "Company"),   entered  into  (and   simultaneously
consummated)  an agreement  and plan of merger (the  "Agreement")  with McKnight
Associates, Inc., a Texas corporation ("McKnight"), McKnight Associates, Inc., a
Delaware  corporation and a wholly-owned  subsidiary of the Company (the "Merger
Sub"), and William McKnight,  an individual and formerly the sole stockholder of
McKnight.  Pursuant to the Agreement,  McKnight  merged with and into Merger Sub
and the  Company  paid  the  following  consideration:  $672,000  in  cash,  the
commitment to pay an additional $250,000 in cash (the "Additional Payment"), the
issuance of 13,636,363  shares of the Company common stock, par value $0.001 per
share  (the  "Shares")  valued  on the  Closing  Date at  $1,500,000,  plus  the
assumption  of  substantially  all the  liabilities  of McKnight  (the  "Assumed
Liabilities").

Reference  is made to the  Agreement  which is being filed as an Exhibit to this
Form 8-K. All statements made with respect to the transaction  discussed in this
Item 1.01 are qualified by such reference.

Item 2.01. Completion of Acquisition or Disposition of Assets.

See Item 101 of this  Current  Report on Form 8-K,  which  Item is  incorporated
herein by this  reference for a description  of the  transaction.  The following
describes  certain of the material  terms of the  transaction.  The  description
below is not a complete description of the material terms of the transaction and
is qualified in its  entirety by  reference  to the  agreements  entered into in
connection with the  transaction  which are included as exhibits to this Current
Report on Form 8-K:

Background

On the Closing Date, the Company  completed the merger of McKnight with and into
Merger Sub.  Pursuant to the Agreement,  the merger was effected in exchange for
$672,000 in cash,  the  commitment to pay the  Additional  Payment in cash,  the
issuance  of the  Shares  (with  an  aggregate  value of  $1,500,000),  plus the
assumption  of the Assumed  Liabilities.  As a result of the merger,  Merger Sub
will continue as the surviving corporation.

As of the  Closing  Date,  William  McKnight  retained  possession  of the  bank
accounts and accounts receivable of McKnight.  The cash in any such accounts and
the value of any such  receivables  were treated  under the Agreement as part of
the  consideration  paid in the  transaction.  However,  if  McKnight  failed to
maintain,  as of the Closing Date,  working capital equal to $150,000,  then the
value of the  receivables  to be  retained by William  McKnight  will be reduced
proportionately  to the amount by which  McKnight's  working  capital  was below
$150,000.

Additional Payment

Within sixty (60) days of the six (6) month anniversary of the Closing Date, the
Additional  Payment  must  be paid  by the  Company  to  William  McKnight.  The
Company's  obligation to make such payment is absolute and not predicated on any
condition, except that the Company will not have to make such payment if William
McKnight  resigns  as an  employee  of the  Company  prior to the six (6)  month
anniversary of the Closing Date.

Registration of Stock and Lock Up Agreement

Pursuant  to the terms of the  Agreement,  the  Company is  obligated  to file a
registration  statement  registering  the resale of the  Shares.  Following  the
registration  of the  Shares,  such  Shares  are  to be  governed  by a  lock-up
provision according to the following terms:  one-third of the Shares are subject
to a three (3) year lock-up  period after their  registration;  one-third of the
Shares are subject to a two (2) year lock-up  period  after their  registration;
and  one-third of the Shares are subject to a one (1) year lock-up  period after
their registration.



Item 3.02. Unregistered Sales of Equity Securities.

See Item 2.01 of this  Current  Report on Form 8-K,  which Item is  incorporated
herein by this  reference,  for a more detailed  description of the terms of the
transaction that includes the issuance of the Shares.

Item 7.01.  Regulation FD  Disclosure.

On July 25, 2005,  the Company issued a press release  announcing  completion of
the  transaction  described  in Item 2.01 above.  The press  release is attached
hereto as Exhibit 99. 1 and is incorporated herein by this reference.  The press
release  and the  information  in Item 7.01 of this Form 8-K shall not be deemed
"filed" for purposes of Section 18 of the  Securities  Exchange Act of 1934, nor
shall  they  be  deemed  incorporated  by  reference  in any  filing  under  the
Securities Act, except as shall be expressly set forth by specific  reference in
such filing.

Item 8.01. Other Events

Employment Agreement

On the Closing Date, William McKnight and the Company entered into an employment
agreement with an initial term of three (3) years at an annual base compensation
of $250,000. Pursuant to the employment agreement,  William McKnight (i) will be
employed as Senior Vice President - Data Warehousing,  (ii) will be eligible for
an annual bonus, if any, as may be determined by the Company, and (iii) may earn
an annual performance based bonus of up to $75,000 for each of the initial three
years of his employment.

Item 9.01. Financial Statements and Exhibits.

            (c)   Exhibits.

      2     Agreement  and  Plan of  Merger  dated  July 22,  2005 by and  among
            Conversion  Services  International  Inc.,  a Delaware  corporation,
            McKnight  Associates,   Inc.,  a  Delaware   corporation,   McKnight
            Associates, Inc., a Texas corporation, and William McKnight.

      3.1   Certificate  of Merger of McKnight  Associates,  Inc. filed with the
            Secretary of State of the State of Delaware on July 22, 2005.

      3.2   Articles  of Merger of  McKnight  Associates,  Inc.  filed  with the
            Secretary of State of the State of Texas on July 22, 2005.

      10.1  Employment  Agreement by and between William McKnight and Conversion
            Services International Inc. dated July 22, 2005.

      99.1  Press Release of Conversion Services  International Inc., dated July
            25, 2005.

This  Current  Report  on Form 8-K may  contain,  among  other  things,  certain
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation Reform Act of 1995,  including,  without  limitation,  (i) statements
with respect to the Company's  plans,  objectives,  expectations and intentions;
and (ii) other statements identified by words such as "may",  "could",  "would",
"should", "believes", "expects", "anticipates",  "estimates", "intends", "plans"
or similar expressions.  These statements are based upon the current beliefs and
expectations  of the Company's  management and are subject to significant  risks
and  uncertainties.  Actual  results  may  differ  from  those  set forth in the
forward-looking  statements.  These  forward-looking  statements involve certain
risks and  uncertainties  that are  subject to change  based on various  factors
(many of which are beyond the Company's control).



                                   SIGNATURES

      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the  undersigned
hereunto duly authorized.

July 28, 2005                          CONVERSION SERVICES INTERNATIONAL, INC.

                                       By: /s/ Scott Newman
                                           -------------------------------------
                                           Name: Scott Newman
                                           Title: President and Chief Executive
                                                  Officer