CRM Junkyard TMC

NICE, Dictaphone Completed CRS Acquisition

June 3, 2005

NICE, a provider of integrated multimedia recording systems for business analysis and insight purposes, announced earlier this week the completion of the company’s acquisition of Dictaphone’s Communications Recording Systems. Dictaphone is a provider of liability and quality management systems, and its CRS unit is a provider of recording systems for 9-1-1 centers and other mission-critical operations in the public safety, financial, and call center markets.

 

As noted in the May issue of CIS magazine, the transaction was expected to close by the end of the second quarter of this year — the companies met their deadline and then some.

 

According to the NICE company statement:

NICE expects that the transaction will consolidate the company’s leadership position with the largest market share in contact centers, financial trading floors and with first responders and command and control centers. Furthermore, with Dictaphone CRS’s intellectual property portfolio, the broadest in the industry, and CRS’s reputation for quality, the acquisition is expected to accelerate incremental sales of NICE’s Insight from Interactions solutions for the public and security and enterprise sectors. 

 

According to Dictaphone’s statement:

Dictaphone’s sale of the CRS unit is part of its strategy to create a company focused principally on the healthcare information technology market. Dictaphone’s Healthcare Solutions Group deploys dictation, transcription and speech recognition software systems in approximately half of the hospitals in the U.S. Its solutions automate critical elements in the creation and management of health information, helping healthcare organizations improve productivity and the quality of patient care.

 

See the press release below.

 

 

NICE Completes Acquisition of Dictaphone’s Communications Recording Systems Business

Ra'anana, Israel, June 01, 2005, - NICE Systems (NASDAQ: NICE), the global provider of advanced solutions that enable organizations to extract insight from interactions today announced the completion of its acquisition of Dictaphone’s Communications Recording Systems (CRS™) business, a leading provider of liability and quality management systems for first responders, critical facilities, contact centers and financial trading floors. The acquisition of the assets of Dictaphone’s CRS business, originally announced on April 11, 2005, was an all-cash transaction for approximately $38.5 million. 

 

NICE expects that the transaction will consolidate the company’s leadership position with the largest market share in contact centers, financial trading floors and with first responders and command and control centers. Furthermore, with Dictaphone CRS’s intellectual property portfolio, the broadest in the industry, and CRS's reputation for quality, the acquisition is expected to accelerate incremental sales of NICE’s Insight from Interactions solutions for the public and security and enterprise sectors. 

 

Haim Shani, Chief Executive Officer of NICE commented, “The Dictaphone CRS acquisition significantly accelerates company growth and solidifies our competitive position in each of NICE’s key sectors. It provides a very large base for opportunities to upsell our Insight from Interactions solutions, and brings tremendous value to the joint customer base with the largest support organization in the industry.” 

 

NICE reiterates previous guidance for 2005, where the acquisition of Dictaphone’s CRS business is expected to add $20 million to NICE’s top-line and 10 cents to the bottom line, taking the company’s revenues to $295 - $300 million. Pro forma EPS excluding the acquisition-related amortization is expected to be approximately $1.50-1.60 per diluted share. 

 

Given the early closing date versus expectations, revenue for the second quarter of 2005 is expected to be higher by $1.5 -2 million; and as a result of earlier recognition of acquisition and integration related costs, a $1.5 million cost is excepted to affect the bottom line. Pro-forma guidance for the second quarter, which excludes the impact of Dictaphone, remains unchanged at revenues of $67-70 million and EPS of $0.32-$0.36. 

 

About NICE
NICE Systems (NASDAQ: NICE) is the leading provider of Insight from Interactions, based on advanced content analytics  - of telephony, web, radio and video communications.  NICE’s solutions improve business and operational performance, as well as security.  NICE has over 23,000 customers in 100 countries, including the world's top 10 banks and 65% of the Fortune 100. 



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