Shares of Verint Systems VRNT rose in the premarket after the business-intelligence company announced a private equity investment of up to $400 million, a $300 million stock buyback program, and plans to split into two separate companies.
Funds advised by Apax Partners have agreed to invest up to $400 million in Verint, the Melville, N.Y., company said late Wednesday.
The investment will be made in two tranches of $200 million each, used to purchase convertible preferred shares, the company said in a statement. The first tranche will have an initial conversion price of $53.50.
After the closing of the first tranche sale, expected in April, Jason Wright, a partner at Apax, will be appointed to Verint’s board.
Verint also said it will separate its customer engagement business and its cyber intelligence business into separate companies, a move expected to be completed by early 2021.
“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,” said Verint CEO Dan Bodner in a statement.
The company also plans a share buyback of up to $300 million, to be carried out between now and the completion of the separation.
At last check shares of Verint rose 8.8% in the premarket to $52.