NICE sold 2 business units for $258 Million

10 August, 2015

The Physical Security business unit was sold to Battery Ventures for $100 million, and the Cyber and Intelligence division was sold to Elbit Systems for $157.9 million

The Physical Security business unit was sold to Battery Ventures for $100 million, and the Cyber and Intelligence division was sold to Elbit Systems for $157.9 million

NICE Systems HQ office in Raanana, Israel
NICE Systems HQ office in Raanana, Israel

NICE Systems (NASDAQ: NICE) has entered into an agreement to sell its Physical Security business unit to Battery Ventures, a technology investment firm, for a total consideration of up to $100 million, comprising of $85 million in cash and up to additional $15 million based on future performance.

NICE’s Physical Security business unit provides video surveillance technologies and capabilities to security-aware organizations. This divestiture will allow NICE to focus on its key markets and enterprise software business as part of the execution of its long-term strategic plan.

“We continue to aggressively execute our long-term strategic plan,” said Barak Eilam, CEO of NICE. “An element of that plan has been the divestiture of two businesses that did not fall within the parameters of our more synergetic, primary businesses. With this agreement, we have completed this stage of our plan”.

Subject to certain conditions and satisfaction of terms, the transaction is scheduled to close during the third quarter of 2015.

Elbit’s Cyber Project

This agreement came about 2 months after NICE sold another business unit: in May 2015, Elbit Systems announced that it has signed an agreement to acquire the Cyber and Intelligence division of NICE Systems, for a total amount of up to $157.9 million, subject to certain customary adjustments. Out of the total amount, $117.9 million will be paid in cash at the time of the closing, expected to take place in the third quarter of 2015. An additional amount of up to $40 million will be paid as earn-out, based upon future business performance.

NICE’s Cyber and Intelligence division offers solutions which provide law enforcement agencies and intelligence organizations with tools for creating communication intelligence. The division’s yearly revenue in 2014 was in the high tens of millions of dollars.

The Cyber and Intelligence division will be acquired by CYBERBIT LTD, Elbit Systems’ newly formed subsidiary, to consolidate Elbit Systems’ activities relating to the Cyber Intelligence and Cyber Security markets. CYBERBIT will focus on both the emerging government and commercial cyber markets, leveraging Elbit Systems extensive and proven cyber experience and technologies.

Adi Dar, an Executive Vice President of Elbit Systems, was appointed as CYBERBIT’s General Manager. The Nice Cyber and Intelligence division’s employees will become employees of CYBERBIT.

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Posted in: Business , Deals and Investments , Featured Stories , News , Software and IT

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