decor decor
"The goal as a company is to have customer service that is not just the best but legendary."

-Sam Walton

Verint Systems Acquires KANA Software for $514 Million

martinwolf Transaction Analysis
Financial Overview
  • Total Transaction Size: $514 Million
  • Implied Enterprise Value (EV): $514 Million
  • EV/Expected Forward Revenue: 3.4x – 3.7x
  • EV/Expected Forward EBITDA: 11.4x – 12.9x               
Transaction Facts
  • Verint Systems (NASDAQ:VRNT), a data-analysis and security software maker, announced today that it had signed a definitive agreement to acquire KANA Software, a customer service and cloud solution provider, for $514 million.
  • According to the press release, Verint expects KANA to generate non-GAAP revenue of approximately $140-150 million and non-GAAP EBITDA of $40-45 million in 2014.
  • KANA Software, which is a portfolio company of Accel-KKR, was first acquired by the private equity firm in 2009 for $41 million.
  • The deal will be financed by approximately $100 million of Verint’s cash, $300 million from incremental term loans and the rest from Verint’s revolving credit.
  • Shares of Verint closed up 9.2% on news of the deal.
Adding Cloud Capabilities to Strengthen An Existing Value Proposition
  • Broadening Capabilities for Providing Services: With this acquisition, Verint is moving to expand its set of capabilities into higher-growth services markets. After the acquisition, Verint’s 10,000 customers (joined by KANA’s 900) will be able to implement a single-vendor suite to manage their customer engagement.
  • Turning to the Cloud: KANA’s solutions offerings cover both on-premise support and cloud alternatives, providing new means with which Verint can reach out to its global network of customers.
  • Transformation Through PE Investment: Following its acquisition by Accel-KKR, KANA grew its global presence by acquiring software companies in the customer service vertical in Ireland, the U.S., the U.K. and the Netherlands.
  • Low Interest Rates Continuing to Spur M&A: Verint is only funding $100 million of the purchase price with cash, fueled by the M&A-friendly, low-interest environment.

 

For more information, read the press release. martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

24 Apr 2024

Celestica (NYSE: CLS) to Acquire NCS Global from Heritage Holding

Financial Information Enterprise Value: $36M (and a possible earnout payment should certain post-closing financial conditions be met) Transaction Details Celestica has entered into a definitive agreement to acquire NCS Global, a US-based IT infrastructure and asset management business. The transaction is expected to close in May 2023 or earlier, subject to satisfaction of customary closing...

02 Apr 2024

CD&R to Acquire Presidio from BC Partners

Financial Information Not Disclosed Transaction Details Clayton Dubilier & Rice (CD&R) and BC Partners announced on April 2, 2024, that they have entered into a definitive agreement under which CD&R will acquire a majority ownership of Presidio. Funds affiliated with BC Partners will retain minority ownership interest. The transaction is expected to close in the...

06 Feb 2024

NWN Carousel acquired by American Securities

Financial Information Revenue: Approx. $900 million Enterprise Value: N/A Transaction Details NWN Carousel announced a transition of ownership from New State Capital Partners to affiliates of American Securities. This transition represents the success of significant investment, organic growth, M&A execution, operational excellence and innovation under ownership of New State Capital Partners. NWN Carousel developed a...