U.S. Dollar banknotes are seen in this illustration picture taken June 14, 2022. REUTERS/Florence Lo/Illustration/File Photo
(Reuters) -Thoma Bravo will acquire Verint Systems in a $2 billion deal, including debt, the customer engagement platform said on Monday, marking the latest software buyout as private equity firms increasingly bet on AI to navigate an uncertain economy.
Software companies have emerged as prime acquisition targets as adoption of artificial intelligence and recurring revenue prove to be resilient markers in an economy pressured by tariffs and volatile customer spending.
Under the agreement, Verint shareholders will receive $20.50 per share in cash. The offer represents a premium of 4.2% to the stock's closing price on June 30, before the talks were first reported, and implies an equity deal value of $1.23 billion, according to Reuters calculations.
Shares of Verint — which provides an AI-powered platform to help enterprises organize, manage and improve customer interactions across various channels and digital operations — were down 1.2% at $20.23.
The stock has lost 25% of its value so far this year, pressured by strong competition and declining revenue in the past two quarters.
Still, some analysts expect Verint's focus on AI bots to result in higher demand as enterprise customers invest in automation and efficiency.
"We believe this was a strategic move for both entities as these organizations are closely aligned in terms of customer experience automation that leverages data and AI, with Thoma Bravo already heavily invested in this market," Wedbush analysts said in a note.
Thoma Bravo, which had about $184 billion in assets under management as of March 31, is among the largest software-focused investors globally. The private equity firm has acquired or invested in more than 530 software and technology companies.
Earlier this month, it had signed a $12 billion deal to acquire human resources software provider Dayforce.
The latest deal is expected to close before the end of Verint's current fiscal year.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)
