NICE Systems has entered an agreement to sell its physical security business unit, which provides video surveillance technologies and capabilities, to Battery Ventures, a technology investment firm, for a total consideration of up to $100 million, comprising $85 million in cash and up to an additional $15 million based on future performance.
Nice systems is a provider of software solutions designed to enable organizations to improve customer experience and business results, ensure compliance, fight financial crime, and safeguard people and assets. In a press release NICE said it is selling this physical security unit in order to focus on its key markets and enterprise software business as part of the execution of its long-term strategic plan.
“We continue to aggressively execute our long-term strategic plan,” said Barak Eilam, CEO of NICE. “An element of that plan has been the divestiture of two businesses that did not fall within the parameters of our more synergetic, primary businesses. With this agreement, we have completed this stage of our plan, and we are now better able to focus on those areas that we believe will continue to drive profitable growth for our company.”
Eilam continued, “We are pleased to reach this agreement with Battery Ventures, which will place great emphasis on this area of business, and will be a good home for our employees. I believe that this business will remain a valuable asset for both customers and partners.”
Subject to certain conditions and satisfaction of terms, the transaction is scheduled to close during the third quarter of 2015.
Beginning in the third quarter of 2015, the company will present its results from continued operations on a pro forma basis with the Physical Security business unit as a discontinued operation.
The company is therefore revising its guidance to exclude the physical security business unit’s projected contribution from third quarter and full-year non-GAAP total revenues and non-GAAP fully diluted earnings per share.
The company now expects full-year 2015 non-GAAP total revenues, on a pro-forma basis as if physical security was excluded from the beginning of the year, to be in a range of $914 million to $934 million (previous guidance: $985 million to $1 billion), and full-year non-GAAP fully diluted earnings per share to be in a range of $2.97 to $3.08 (previous guidance: $3.04 to $3.15).
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