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Verint to Buy Kana for $514M to Complement Technology


(Bloomberg) -- Verint Systems Inc. plans to buy Kana Software Inc. for about $514 million to add technologies to complement its Actionable Intelligence software that helps organizations capture and analyze voice, video and text data.

The purchase of Kana from Accel-KKR will be financed by about $100 million in cash and $300 million in loans, with the remainder funded by a credit facility, Melville, New York-based Verint said today in a statement. Completion of the deal is targeted by the end of April.

Kana has about 900 customers, including some already in Verint’s 10,000-customer base, and the software makers will work on joint products to improve clients’ operating efficiency and workforce performance, the companies said.

“There is a strong cultural fit between the two companies and a foundation for a successful future together, for both our current and prospective customers, as well as our employees,” Verint Chief Executive Officer Dan Bodner said in the statement.

The acquisition will probably add to earnings in Verint’s fiscal year through January 2015, with Kana generating revenue of as much as $150 million and earnings before interest, taxes, depreciation and amortization of as much as $45 million in calendar-year 2014 on a non-generally accepted accounting principles basis, Verint said.

Verint rose as much as 6.1 percent, the biggest intraday gain since Sept. 4, and was trading up 5.8 percent on the Nasdaq Stock Market at $44.87 as of 10:50 a.m. in New York. The shares, which are at the highest price since the software maker’s May 2002 initial public offering, have gained 49 percent in the past 12 months, valuing Verint at $2.4 billion.

Jones Day was the legal adviser to Verint on the purchase. Goldman Sachs Group Inc. was financial adviser and Kirkland & Ellis LLP was legal adviser to Kana.

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