Verint Systems has signed $780.7m deal to acquire Comverse Technology
Security software maker Verint Systems has agreed to acquire Comverse Technology (CTI) in a deal worth approximately $780.7m, following the spinoff of its telecommunications billing-software unit.
The spinoff of Comverse unit is expected to be ended in October 2012, with the expected scheduled merger closure in the first quarter ending in April 2013.
Comverse chief executive officer Charles Burdick said, "This agreement, along with the planned spinoff of Comverse Inc., will result in a tax efficient distribution to our shareholders and direct ownership in two independent, well- capitalized publicly-traded companies."
The sale follows two years after Comverse Technology rising from stock-options backdating scandal and a period during which both the companies had failed to reveal their financial statements as they were experiencing an expensive audit.
Currently, Comverse Technology holds nearly 41% basic outstanding shares of Verint and all of Verint’s outstanding convertible preferred shares.
Verint Systems CEO and president Dan Bodner said, "The elimination of the convertible preferred stock and dividend will simplifyVerint’s capital structure and the distribution of Verint’s shares directly to CTI’s shareholders will significantly increase Verint’s public float and liquidity for investors."