Software maker Nice Systems agreed to acquire cloud contact center service provider InContact (Nasdaq:SAAS) for $14 a share or $940 million, both companies announced on Wednesday, combining two key contact center technologies and adding further sizzle to an already hot cloud sector. In an interview, the companies told the Daily Cloud that the combination would yield significant growth synergies and enhance InContact’s leadership in the cloud contact center market.
InContact is one of the few publicly quoted pure-play providers of contact center as a service (CCaaS). Based in Salt Lake City, it reported $222 million in revenue last year, up 29% from the previous year. Based in Israel with a U.S. office in Paramus, New Jersey, Nice Systems is a provider of workforce optimization software used in contact centers. It reported revenue of $927 million last year. The acquisition values InContact at 3.6 times estimates of InContact’s revenue this year.
>NICEis the worldwide leading provider of enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE solutions help the world’s largest organizations deliver better customer service, ensure compliance, combat fraud and safeguard citizens. With over 25,000 organizations in more than 150 countries, including over 80 of the Fortune 100 companies, are using NICE solutions. NICE traditionally has focused on analytics-based customer service tools for financial institutions and other large enterprises.
Both companies told the Daily Cloud that there would be substantial full range of solutions for the fast-growing Contact Center as a Service (CCaaS) industry that is substantially larger than NICE’s current addressable market. Additionally, the two companies will continue to cultivate their large partner network, enabling partners to offer an unparalleled range of leading contact center solutions, both in US and international markets. NICE CEO Barak Eilam says "Together, inContact and NICE are combining our best-in-class contact center applications and analytics with cloud contact center. "This unprecedented integration is at the core of our vision for the transformation of the legacy contact center into the new era of the Experience Center." inContact CEO Paul Jarman will continue to lead inContact as it becomes part of NICE.
Under the terms of the agreement, NICE will acquire inContact for $14 per share in cash. The transaction values inContact at approximately $940 million, including repayment of inContact’s outstanding convertible debt and excluding inContact cash on hand. NICE plans to finance the acquisition with cash on hand as well as debt of up to $475 million. Subject to satisfaction of customary closing conditions, including receipt of regulatory approvals as well as inContact shareholders’ approval, the transaction is expected to close before the end of 2016. The company expects the acquisition be accretive to earnings on a non GAAP basis in 2017.
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