Back in January, we reported that Comverse Technology(CMVT) would be spinning off subsidiary Comverse, Inc., leaving the parent with majority ownership of Verint(VRNT), as well as Starhome, a private company. We speculated at the time that the company would then follow up by distributing its Verint shares and winding down the holding company.
Today, it was announced that Verint would instead purchase the holding company, which, after the spinoff, and the recently announced sale of Starhome for $80.3 million, will consist almost entirely of shares of Verint. The purchase is expected to take place in the first quarter of 2013, following the completion of the spinoff in October 2012. Though the ratio may change, at today’s prices, Comverse shareholders would get .13 shares of Verint for each share of Comverse that they own.
Comverse has been a company long plagued by problems and burdened by a complex structure. Hopefully, this simplification will bring relief to long-suffering shareholders.
Disclosure: The author holds no position in any stock mentioned
- Why Comverse Technology Sank (dailyfinance.com)