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A NICE Verint deal?

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Tuesday, January 15, 2013

Will there be a very nice Verint NICE deal soon? That's what the rumor mill says.

Rueters reported yesterday that Verint Systems stock was up more than 7 percent and NICE shares were up 6.7 percent on reports from Globes, an Israeli financial site, that said Nice Systems is talking to Verint about buying it for $1.5 billion.

It's said to be a cash and stock offer that would "represent a 19 percent premium on its market cap of $1.26 billiion," according to Rueters.

I called NICE and Verint for comment and heard back from Erik Snider, NICE director of corporate communications. Snider said via email, "As policy, NICE does not comment on such rumors."

This possible acquisition comes as Verint is about to become an independent company, something I reported on last fall. Here's that story. 

I spoke to Michael McManus of Imperial Capital, who noted that if this deal happens it's not necessarily a "security thematic" play, as both NICE and Verint have non-security divisions. "They're much more than two VMS companies," he said.

The fact that Verint is scheduled next month to become independent from its former owner and former messy capital capital structure is important, McManus noted. (Take a look at the link above to learn about some of the compllications Verint had with its parent company.) 

Once Verint does become independent, it will be the first time that that it "would be separated from its past troubles—the first time in recent memory that it would be possible [for someone to acquire Verint] in a clean deal," McManus said.

McManus speculated that NICE may want to make a preemptive offer just as Verint is about to become public and "before a U.S.-based interloper" makes on offer for Verint.

I also have a call into  Verint, no word yet.

Stay tuned.

 

Verint to become independent, public company

Deal announced to ‘buy out’ parent company in share exchange
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08/15/2012

MELVILLE, N.Y.—If the merger deal with its parent company, Comverse Technology Inc. (CTI), goes through as planned, video surveillance provider Verint will be a 100 percent independent public company as early as February.