Brookfield in Talks to Acquire NICE's Actimize for $2 Billion
Canadian investment giant Brookfield is reportedly in talks to acquire NICE's Actimize division for about $2 billion, sending NICE shares higher.
NICE shares jumped following a Sky News report indicating that Canadian investment giant Brookfield is in talks to acquire Actimize from NICE for approximately $2 billion. According to the report, Brookfield's financial infrastructure arm is conducting the negotiations, though sources noted that terms are not yet finalized and discussions could fall through.
NICE, led by CEO Scott Russell, provides customer engagement and risk management solutions and trades on NASDAQ and in Tel Aviv with a market valuation of $6.9 billion. Since the beginning of the year, NICE shares have risen by a low single-digit percentage, and recent months saw reports that the company sought to sell its financial crime and risk management division, built around Actimize, which NICE acquired in 2007.
Earlier reports mentioned non-binding offers received by NICE around $2.5 billion, representing a higher valuation than currently discussed. In response to the Sky News report, NICE shares climbed in pre-market trading on NASDAQ and on the Tel Aviv Stock Exchange.
According to Brookfield's website, the firm manages over $1 trillion in assets across more than 50 countries. It trades concurrently on the New York and Canadian stock exchanges and boasts a market cap of $73.5 billion.
NICE reported a 7.6% revenue growth in the second quarter to approximately $782 million, driven by a 12.6% jump in cloud revenues totaling $609 million. The quarter concluded with a GAAP net income of $83.2 million, a decrease compared to the parallel quarter, closing with around $355 million in cash and zero debt. Last year, NICE acquired AI firm Cognigy for $955 million.
