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NICE Plans to Take Over Merced Systems

By Jyothi Shanbhag
TMCnet Contributor

NICE has entered an agreement to acquire Merced Systems (News - Alert).

According to the sources, NICE is completing this transaction with Merced for a total consideration of an approximately $150 million and additional $20 million in cash subject to meeting certain performance targets. The deal is expected to close by the middle of the first quarter of 2012.

The company even expects Merced to add a further $55 million to 2012 Non-GAAP revenues with a greater portion of the revenues to occur in the fourth quarter, and to add approximately $0.10 per share to fully diluted 2012 Non-GAAP EPS. NICE expects the acquisition to be $0.02 - $0.03 dilutive to fully diluted Non-GAAP EPS for the first quarter of 2012.

Zeevi Bregman, President and CEO of NICE, said that the acquisition of Merced constitutes an important and strategic addition to their offering of enterprise-wide customer interaction solutions and expanding their portfolio with the market leading performance management solutions will enable both NICE and Merced customers to enjoy an enhanced offering with rich functionality.

“Furthermore, leveraging Merced's products and market leadership in branches and retail stores, together with our customer feedback and real-time analytics, will enable us to extend the benefits we provide at these customer touch points," Bregman added.

This acquisition will enable NICE to reap benefits of Merced's flagship solutions, available in on-premise, SaaS (News - Alert) and hosted models, including Merced Service Performance Management, which provides performance analytics and dashboards, service coaching, incentive management and real-time reporting for enterprise service personnel.

Merced's solutions are currently used by leading companies worldwide to improve productivity, boost revenue, and increase customer satisfaction. Customers span multiple verticals such as telecommunications, financial services, and healthcare.

Matt Glickman, CEO of Merced said, "We are proud to join the leading provider of customer interaction solutions. Through this combination, our leading performance management solutions will now be available to NICE's broad base of customers. We already have customers enjoying the benefits of the integration of our solutions with some of NICE's solutions.”