Comverse mulls sale of Verint: report
(Reuters) - Software developer Comverse Technology Inc CMVT.PK is likely to pursue a sale of Verint Systems Inc (VRNT.O), in which it holds a majority stake, the Wall Street Journal reported, citing people familiar with the matter.
In a filing with U.S. regulators last week, Verint said that Comverse, which holds a stake of 61.3 percent in the analytics and security software firm, plans to sell about 8 percent of its majority stake and raise up to $72.2 million in the public offering.
People familiar with the matter told the Journal that a potential deal could fetch about $2 billion but that the Comverse board has not made a decision about Verint yet.
Comverse, which for years has been tangled up in an options backdating scandal, has a few more financial statements to file to comply with regulatory requirements.
Once the filings are complete, which people familiar with the matter expect by the end of March, Comverse is expected to look for potential buyers for Verint, the paper said.
Comverse and Verint were not immediately available for comment outside of regular U.S. business hours.
(Reporting by Jennifer Robin Raj in Bangalore)
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Comverse sells Verint shares for $80.5m
The sale reduced Comverse’s stake in Verint from 50.5% to 44.3%
11 January 11 16:39, Tali Tsipori
Comverse Technology Inc. (Pink Sheets: CMVT) yesterday sold 2.3 million shares in Verint Systems Inc. (Nasdaq: VRNT), at $35 per share for a total gross proceeds of $80.5 million. The sale reduced Comverse’s stake in Verint from 50.5% to 44.3%
There were two aspects to the success of the sale. The offering was oversubscribed seven-fold, which meant that the underwriters exercised their over-allotment option to buy 300,000 Verint shares, in addition to the original two million shares offered by Comverse. Second, the offer price of $35 per share gives Verint a market cap of $1.3 billion. The share price rose 2% at the opening today to $35.90 yesterday, after rising 85% over the preceding year.
The success demonstrates investors’ interest in Verint, a developer of surveillance software and competitor of NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE). Investor interest is also strong at NICE, whose share price has risen 45% over the last two years, is unchanged at the opening on Nasdaq today at $34.05, giving a market cap of $2.14 billion.
Comverse has not said if it plans to sell more Verint shares, but the strong demand in the present offering might prompt it to do so. Comverse is trying to sell subsidiaries in whole or in part to US private equity funds or technology companies. Comverse’s share price was unchanged at the opening today $7.35, giving a market of $1.5 billion.
Credit Suisse Securities (USA) LLC was sole bookrunner for the offering, Barclays Capital Inc. and Morgan Stanley & Co. Inc. were the joint lead managers, and RBC Capital Markets LLC and Oppenheimer & Co. Inc. were the co-managers.
Published by Globes [online], Israel business news – www.globes-online.com – on January 11, 2011
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