Verint plans $650 million credit facility for Witness buy

By Sara Rosenberg

New York, Feb. 12 - Verint Systems Inc. plans on getting a new $650 million credit facility to help fund its acquisition of Witness Systems, Inc.

The new bank debt is expected to carry an interest rate of Libor plus 250 basis points, company officials said in a conference call Monday.

Lehman Brothers, Deutsche Bank and Credit Suisse are the lead banks on the deal.

Under the transaction agreement, Verint will pay $27.50 per Witness share in cash. The total enterprise value of the transaction is about $950 million.

Other acquisition financing will come from a $293 million preferred stock investment by Comverse Technology, Inc. and from existing cash of the combined company.

The transaction is targeted to close in the second quarter, pending approval by regulators and by stockholders of Witness Systems, as well as satisfaction of other customary closing conditions.

Verint is a Melville, N.Y., provider of analytic software-based products for security and business intelligence. Witness is a Roswell, Ga., provider of workforce optimization software and services.

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