Further consolidation in the call recording market was announced last week when Verint Systems acquired Mercom Systems. Mercom has approximately 60 employees and is headquartered in Lyndhurst, NJ. It has a small UK staff based in Basingstoke, Hants.
In the UK Mercom was best known for their integration Inter-Tel PBX systems and Swan Solutions Callview product range.
Kevin Burns, Commercial Director, EMEA, Inter-Tel told Comms Business Magazine, “The acquisition by Verint of Mercom is viewed as a positive step for Inter-Tel and its channels. Verint is a world leader in the call recording and quality monitoring space and is experienced in selling recording solutions to large enterprises complementing Mercom’s success in the small to mid-sized recording space. Inter-Tel believes that as long as we continue to receive the services of Chris Wood, our Account Manager at Mercom we foresee no changes other than for the better. Mercom has been the preferred supplier of call recording solutions for Inter-Tel in EMEA for a number of years and we see this as an excellent opportunity to strengthen that relationship.”
This acquisition will enable Verint to more effectively bring actionable intelligence to the growing small-to-midsize enterprise contact center market, leveraging Mercom’s significant experience in developing, packaging and delivering solutions tailored to this market’s specific requirements. Through its global base of resellers, Mercom distributes its recording and performance evaluation solutions to contact centers across a wide range of customers, including financial institutions, utility companies, public security and other enterprise and government agencies.
“We believe that there is growing demand for analytical solutions that can help drive operational effectiveness in the small-to-midsize enterprise market,” said Dan Bodner, President and CEO of Verint Systems. “The Mercom team has a strong track record in this growing market and we look forward to providing our combined global channels with an expanded portfolio of value-added analytical solutions.”
Verint Systems has acquired the business of Mercom for $35 million in cash at closing and potential additional cash earn-out payments not to exceed $17.5 million over two years based on certain performance targets. The acquisition is expected to contribute approximately $8 million of revenue for the remainder of Verint’s Fiscal 2006 and is expected to be non-dilutive to pro forma EPS, excluding the amortization of intangibles assets and one-time charges related to the acquisition.