Verint Acquired by Thoma Bravo for $2 Billion in Cash Deal

Verint Systems announced Monday it has finalized its acquisition by private equity firm Thoma Bravo, in a $2 billion all-cash transaction. Under the terms of the agreement, Verint shareholders will receive $20.50 per share, representing an 18% premium over the 10-day weighted average share price prior to media speculation in late June.

The transaction includes $400 million in cash reserves already on Verint’s balance sheet. Verint's shares closed Friday at $20.47, valuing the company at $1.23 billion ahead of the announcement.

Thoma Bravo Continues Israeli Investments

Thoma Bravo, one of the world’s largest private equity firms focused on software, has invested in or acquired more than 530 tech companies to date. It has an active presence in Israel, both for fundraising and acquisitions.

Past Israeli deals include:

• Imperva, acquired for $2B and later sold to Thales for $3.6B

• IronSource, taken public via SPAC at the height of the tech bubble in 2021

Thoma Bravo typically targets profitable but slow-growing firms, applying aggressive operational changes, sometimes merging them with other portfolio companies before reselling or re-listing them.

Verint: A Fit for the Model, But a Modest Deal

Though small by Thoma Bravo standards, Verint fits the firm's profile. The company reports:

• $900 million in revenue

• $150 million in annual operating cash flow

• Consistent but modest profitability

However, Verint also carries $1.3 billion in goodwill, stemming from years of acquisitions, and $400 million in convertible debt raised at zero interest.

Verint's challenge lies in its stagnant growth and increasingly unclear market position. The rapid rise of AI-powered CRM tools threatens traditional systems like Verint's, as simpler, in-house alternatives become more accessible. Recent Israeli examples — like BASE44's sale to WIX — underscore the direction of disruption.

Lagging Behind NICE: A Cautionary Tale

Verint’s trajectory pales next to its long-time rival, NICE Systems, another Israeli-origin CRM and surveillance firm. Despite its own AI-related challenges, NICE still trades at $10 billion, down from a peak of $20B, and has returned 30x to shareholders since its IPO.

In contrast, Verint has not significantly grown for years, and failed to capitalize on emerging trends.

Dan Bodner: Longtime CEO and Primary Beneficiary

Verint was originally founded in 1994 as a division of Comverse, focused on surveillance and video analytics, before branching into customer service and CRM.

The company has been led for decades by CEO and Chairman Dan Bodner (66), who will personally receive $18 million upon change of control — on top of an average $10 million annual compensation package in recent years.

Most of Verint’s current executive team is American, and they too will receive bonuses from the sale.

The largest shareholder, Apex Fund, owns 13.8% of Verint. It will take a heavy loss, having invested $400 million in two rounds — one of which was made when the share price was more than twice today's value.

Other major shareholders include BlackRock and Vanguard.

Though an Israeli-born company, Verint now has little connection to Israel:

• Only 200 of its 3,800 employees are based in Israel (just 5%)

• Most of its Israeli R&D staff transferred to a spinoff (Cognate’s cyber division)

• Its leadership is now almost entirely U.S.-based

As such, the sale to Thoma Bravo — while notable in tech investment circles — is not expected to have a significant impact on the Israeli tech sector or economy.