Comverse Technology (Nasdaq: CMVT) subsidiary Verint Systems (Nasdaq: VRNT), which develops analytic software-based solutions for security and business intelligence, announced on Friday it had acquired Mercom Systems Inc., a privately-held provider of interaction recording and performance evaluation solutions for small-to-midsize enterprises with contacts centers. Mercom has approximately 60 employees and is headquartered in Lyndhurst, NJ. Verint paid $35 million in cash for Mercom and will pay a further $17.5 million over two years, subject to Mercom meeting certain performance targets. Comverse Technology owns 57% of Verint.
The acquisition will enable Verint to more effectively bring actionable intelligence to the growing small-to-midsize enterprise contact center market. The company said in its announcement that Mercom distributes its recording and performance evaluation solutions to contact centers across a wide range of customers, including financial institutions, utility companies, public security and other enterprise and government agencies.
Verint CEO and president Dan Bodner said, “We believe that there is growing demand for analytical solutions that can help drive operational effectiveness in the small-to-midsize enterprise market. The Mercom team has a strong track record in this growing market and we look forward to providing our combined global channels with an expanded portfolio of value-added analytical solutions.”
Like other Comverse Technology subsidiaries, Verint has still not yet filed its financial report for the first quarter of 2006 nor its report for 2005 as whole. The company has delayed publication of its reports to allow a retroactive review of its books following the options backdating policy practiced by its parent. Verint said, however, that its first quarter revenue totaled $72 million, an increase of 4.3% on the fourth quarter in 2005, and 21.8% on the corresponding quarter last year. The acquisition is likely to add $8 million to the company’s bottom line by the year’s end.
Published by Globes [online], Israel business news - www.globes.co.il - on July 16, 2006
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