NSO Kills Merger Talks with Surveillance Company Verint
The stock and cash deal negotiated would have seen Verint pay a combined $1 billion dollar for NSO
Golan Hazani | 12:16 23.07.2018
The $1 billion merger deal between the defense division of Nasdaq-listed surveillance and business intelligence company Verint Systems Inc. and Israeli cyber surveillance company NSO Group is off, two people familiar with the matter told Calcalist on condition of anonymity. The merger talks were first reported in May.
For daily updates, subscribe to our newsletter by clicking here.According to the two people familiar with the matter, continuous opposition from NSO co-founders and co-managers Shalev Hulio and Omri Lavie led to the termination of the talks.
Francisco Partners declined to comment on the recent unsuccessful negotiations with Verint. Together, NSO founders Hulio and Lavie hold a 20% stake in the company, but their consent is seen as crucial given their central role at the company.
Hulio and Lavie’s objections to the merger were due to wide differences in the organizational culture of the two companies, one person familiar with the matter said. Other objections related to the level of independence NSO will have in a merged company, and to the dependence of the overall worth of the deal on Verint’s stock price, that person said.Earlier this month, Israeli court partially lifted a gag order on an indictment filed against a former NSO employee accused of stealing NSO's spyware code and data and attempting to fence it off on the dark web for crypto coins worth $50 million. The employee was arrested before he managed to sell the code, after the third party he was negotiating with contacted NSO.
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