Tuesday, November 14, 2006

First Analysis Securities Comments on Nice Systems (NICE)/Witness Systems (WITS) Merger Speculation

In a recent research report, First Analysis Securities commented on recent reports that Nice Systems (Nasdaq: NICE) is in talks to buy Witness Systems (Nasdaq: WITS) for approximately $750 million.

The firm said on paper, a merger between Nice and Witness would be highly accretive, to the tune of $0.15-$0.35 per share, even under the assumption that Nice acquires Witness for $23-$25 per share.

The firm also said a merger would stop the price battles between the two companies and create a powerhouse for call center quality monitoring. The firm said the differing cultures would be the biggest hurdle. The firm said uncertainty is too high for them to recommend either stock.

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