Thoma Bravo, a software-focused private equity firm, announced a deal to acquire Verint Systems Inc. (VRNT) for $2 billion in cash. Verint is a software company that provides customer engagement and analytics solutions to businesses. The agreement values Verint at $20.50 per share, which is about an 18% premium over its price before news of the talks surfaced.
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The transaction is expected to close in early 2026, pending regulatory approval. Once that happens, Verint Systems will cease to be a public entity and will not be publicly traded on Wall Street.
Creating a Single Platform for Customer Experience
Following the acquisition, Thoma Bravo plans to merge Verint with Calabrio, another company in its portfolio. Together, they aim to build a single provider for customer experience automation solutions. The combined business will target a market estimated at more than $50 billion and will offer a wide range of tools for call centers and digital support teams.
Calabrio and Verint both focus on using analytics and AI to improve customer interactions and workforce performance. By joining forces, they expect to create an open platform that helps companies improve efficiency and achieve results faster. The combined company also intends to maintain and invest in current products for its customer base.
The Money Behind the Acquisition
To fund the acquisition, Thoma Bravo secured about $2.7 billion in debt financing led by Banco Santander. The firm will use part of the proceeds to repay Calabrio’s existing private debt. This approach mirrors recent trends in leveraged buyouts, where firms use bank loans to avoid equity dilution. The loan market has shown renewed activity this year after a slowdown in 2024, and this deal reflects that shift.
Verint’s financial profile supports the structure, as the company generates about $150 million in operating cash flow. It also derives half of its annual recurring revenue from AI-powered solutions. Verint serves more than 85% of Fortune 100 companies, giving the combined entity a strong client base. This acquisition marks Thoma Bravo’s second major software deal in August, following its $12.3 billion purchase of Dayforce.
Is VRNT Stock a Buy?
On the Street, Verint boasts a Hold consensus based on 8 analysts’ ratings. The average VRNT price target stands at $21.36, implying a 5.74% upside from the current price.
