Verint Systems to acquire KANA Solutions for US$514M
Transaction comprises US$100M of Verint’s cash, US$300M from incremental term loans and rest from Verint’s un-drawn revolving credit facilityBy Saloni Surti 08 Jan, 2014
Image Courtesy: KANA website
Verint Systems, a New York-based business intelligence solutions company, has announced signing a definitive agreement to acquire California-based KANA, provider of on-premise and cloud customer solutions, for approximately US$514M.
Post the acquisition, Verint will extend its ‘Actionable Intelligence’ strategy to KANA with an aim to create a single-vendor suite to help enhance customer engagement. The transaction is expected to be financed through a combination of cash on hand and debt, using approximately US$100M of Verint’s cash, approximately US$300M from incremental term loans, and the balance from Verint’s un-drawn revolving credit facility.
“We believe that acquiring KANA would allow Verint to offer a holistic customer engagement strategy powered by Actionable Intelligence, providing significant value for our customers and partners,” said Dan Bodner, CEO, Verint.
Verint is expected to acquire the customer communications agency at the end of its (Verint’s) first fiscal quarter.
“Our management team is excited about the opportunity to join a global technology leader like Verint, and we have every expectation that our customers will be excited as well, especially as they learn more about how Verint and KANA can provide a lens into who is doing what, when, how and why in day-to-day engagements with their customers,” said Mark Duffell, CEO, KANA.
Organisations these days collect a lot of data through customer communications, most of the time not even being aware of the gold mine they are sitting on. According to an official statement, the combined product suite aims to offer global enterprises the ability to capture and manage cross-functional information around customer interactions, business processes and workforce performance to improve operational efficiency, reduce risk and enhance customer loyalty.
Jones Day served as legal advisor to Verint in connection with this transaction while Goldman, Sachs & Co. served as financial advisor and Kirkland & Ellis LLP served as legal advisor to KANA.
KANA deals with almost 900 global customers and Verint has a base of nearly 10, 000 users worldwide. Until the acquisition pans out, customers will be offered supports and services in the usual manner.