NICE Systems/Dictaphone
NICE Completes Acquisition of Dictaphone's Communications Recording Systems Business*
RA'ANANA, ISRAEL June 1, 2005 – NICE Systems (NASDAQ: NICE), the global provider of advanced solutions that enable organizations to extract insight from interactions today announced the completion of its acquisition of Dictaphone's Communications Recording Systems (CRSTM) business, a leading provider of liability and quality management systems for first responders, critical facilities, contact centers and financial trading floors. The acquisition of the assets of Dictaphone's CRS business, originally announced on April 11, 2005, was an all‑cash transaction for approximately $38.5 million.
NICE expects that the transaction will consolidate the company's leadership position with the largest market share in contact centers, financial trading floors and with first responders and command and control centers. Furthermore, with Dictaphone CRS's intellectual property portfolio, the broadest in the industry, and CRS's reputation for quality, the acquisition is expected to accelerate incremental sales of NICE's Insight from Interactions solutions for the public and security and enterprise sectors.
Haim Shani, Chief Executive Officer of NICE commented, "The Dictaphone CRS acquisition significantly accelerates company growth and solidifies our competitive position in each of NICE's key sectors. It provides a very large base for opportunities to upsell our Insight from Interactions solutions, and brings tremendous value to the joint customer base with the largest support organization in the industry."
NICE reiterates previous guidance for 2005, where the acquisition of Dictaphone's CRS business is expected to add $20 million to NICE's top-line and 10 cents to the bottom line, taking the company's revenues to $295 - $300 million. Pro forma EPS excluding the acquisition-related amortization is expected to be approximately $1.50-1.60 per diluted share.
Given the early closing date versus expectations, revenue for the second quarter of 2005 is expected to be higher by $1.5‑2 million; and as a result of earlier recognition of acquisition and integration related costs, a $1.5 million cost is excepted to affect the bottom line. Pro-forma guidance for the second quarter, which excludes the impact of Dictaphone, remains unchanged at revenues of $67‑70 million and EPS of $0.32-$0.36.
* Compass Advisers acted as financial advisor to NICE Systems in the transaction.