NICE sells security business to technology investment firm
NICE Systems announced Monday it has entered into an agreement to sell its physical security business unit to Battery Ventures, a technology investment firm, for a total consideration of up to US$100 million, comprising of $85 million in cash and up to additional $15 million based on future performance.
NICE’s physical security business unit provides video surveillance technologies and capabilities to security-aware organizations.
According to the company, this divestiture will allow it 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, in a statement. “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 added, “The physical security business unit has been a source of pride for NICE for many years with its history of constant innovation and market leadership. 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.”
The transaction is expected to close during the third quarter of 2015, subject to terms and conditions.