Mega merger: Nice set to buy Verint - Israel Business, Ynetnews

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Verint currently traded on $1.25 billion market cap
Verint currently traded on $1.25 billion market cap 
Nice traded on $2.11 billion market value
Nice traded on $2.11 billion market value 

Mega merger: Nice set to buy Verint

Two Israeli civil defense software giants working out details of merger deal at $1.5 billion in cash and stock, estimated to reflect 25% premium over Verint’s market value

Golan Hazani, Calcalist
Published: 01.14.13, 13:21 / Israel Business

Verint and Nice, the world’s two leading developers of civil defense monitoring solutions, are holding talks for a mega merger, Calcalist has learned.


Negotiations have been underway for over a month now. The deal’s estimated value is a whopping $1.5 billion in cash and stock.


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Nice will use its hefty cash reserves to foot the bill for the acquisition which will create a $4 billion-worth civil defense leviathan. An agreement will necessitate anti-trust approvals from the numerous countries in which the two have business.


Verint is currently traded on a $1.25 billion market cap after catapulting 25% within the past two months. Negotiations reflect a 20%-25% premium over that value. Nice is traded on a $2.11 billion market value.


Verint, a developer of video and audio monitoring solutions and software analytical solutions for the defense and civilian markets, operates predominantly in the defense market (70%) whereas Nice, which deals in digital recording and retrieval solutions and communications systems for the intelligence services, makes 75% of its sales in the civilian market.


Both companies have similar operational results.


Due diligence is expected in the next several weeks, possibly by a neutral third party as the two companies are rivals.


Such a merger, at 38$-39$ per share, would yield a company which rakes in a staggering $1.5 billion a year.


This report was originally published in Hebrew by Calcalist



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