Reports Nice Systems (NICE) Could Be Raising Money to Acquire Witness Systems (WITS)

According to reports from Haaretz.com, Nice Systems (NASDAQ: NICE) is looking to raise $300 million and could use the money to acquire rival Witness Systems Inc. (NASDAQ: WITS). In the past media reports suggested Nice Systems could buy Witness Systems for $750 million but a transaction never took place. Link

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.