Apax Partners has agreed to invest up to $400m in analytics software business Verint as the company reveals a plan to split into two distinct entities.
Verint said it will separate its operations into a customer engagement business and cyber intelligence unit, with the process expected to be completed just after January 2021.
Apax will invest $200m in the form of convertible preferred stock by the end of Q1 2020, and another $200m into the customer engagement business shortly after the split occurs.
Jason Wright, partner at Apax, said, “We are excited to partner with Verint and help the company complete the separation, enabling both businesses to achieve their full potential.
“Verint’s customer engagement business is a market leader and we look forward to working with management to execute its cloud strategy and extend its market leadership.”
Previous Apax investments in the software sector included TriZetto, Plex Systems, RealPage, Sophos, Epicor and Exact Software.
Verint CEO Dan Bodner added, “With our customer engagement business approaching $1bn in annual revenue and our cyber intelligence business approaching $500m in annual revenue, we believe the two independent, publicly traded companies will both benefit from the separation and be well positioned to pursue their own strategies, drive opportunities to accelerate growth and extend their market leadership.
“The separation will make it easier for investors to evaluate and make independent investment decisions in each business.”
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