Verint is for sale?


The Wall Street Journal is reporting that Israeli-based Comverse Technology is looking to sell subsidiary Verint for approximately $2 billion. TheStreet.com also picked up the news:

The board of software maker Comverse hasn’t made a decision about Verint’s future. It can’t do so now because Verint, a maker of analytic and security software, is in the midst of selling 2 million common shares, the people said. But a sale of Verint, of which Comverse owns roughly 55%, is the likeliest course of action and could come after the parent company files the last of its outstanding financial reports with regulators, the Journal reports.

Two billion U.S. dollars is no pocket change. Verint is one of the top makers of workforce management, analytics, and security software, and such a sale means two things: 1) Comverse is (still) in a lot of trouble; and 2) the analytics market is growing strong. At a $2B price tag, however, there won’t be a lot of capable buyers.

Comverse has been marred by financial scandals, stemming from accounting issues and options backdating, and was delisted from NASDAQ in 2007. Ex-CEO Jacob “Kobi” Alexander even fled to Namibia to avoid arrest in the U.S.

Selling Verint would probably be a good thing for the company and its parent, Comverse. My guess is that private equity firms may end up owning Verint, should the sale really come to fruition.

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