“This is really good news, long term, for Verint,” Jeff Kessler, managing director of Imperial Capital, told Security Systems News recently.
According to Kessler, the merger deal will give Verint a cleaner capital structure and increasing liquidity of the stock available to investors.
Under the terms of the deal, CTI will spin off its telecom business to Comverse shareholders, at which point “the only asset left is the 53 percent share in Verint,” Alan Roden, Verint SVP corporate development, told SSN.
Verint will then acquire Comverse through an exchange of shares. What this does is get rid of Comverse’s majority stake in the company.
Specifically, Verint will buy CTI for approximately 27.5 million Verint common shares and up to an additional $25 million in Verint common shares.
The additional shares are related to dividends to which CTI is entitled.The deal must be approved by Verint and CTI shareholders.
