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Verint to acquire its majority owner
Verint Systems Inc., an intelligence and technology firm in Melville, announced Monday it would acquire Comverse Technology Inc., a holding company that currently owns a majority stake in Verint.
Through the acquisition, Verint will become a more independent public company without majority ownership interests, said Verint chief executive Dan Bodner in a news release.
Verint's business focuses on analyzing large amounts of information gathered from surveillance video, telephone calls and other sources to determine potential security issues.
Comverse, which used to be based in Woodbury before moving its headquarters to Manhattan, underwent significant restructuring earlier this year as it spun off one of its software technology units into another public company and redistributed most of its other assets except for its Verint ownership.
Verint will acquire Comverse for 27.5 million Verint shares -- equal to the majority ownership that Comverse held -- with the possibility of another $25 million worth of Verint stocks, depending on the timing of the transaction. The $25 million is equal to the dividend Comverse could have made if they had held the 27.5 million shares of Verint for two years.
Comverse had previously been embroiled in a Securities and Exchange Commission investigation involving its executives backdating stock options so they could receive more compensation. The charges were settled when former chief executive Jacob Alexander paid $53.6 million to the federal government.