Verint is Expanding its Cloud Platform Capabilities to Help Brands Accelerate Digital-First Customer Engagement

Rhea-AI Summary

Verint (NASDAQ: VRNT) has announced the acquisition of Conversocial for $50 million to enhance its digital-first capabilities. This acquisition aims to expand Verint's conversational AI offerings, enabling brands to improve customer engagement across messaging channels like Facebook Messenger and WhatsApp. Conversocial has a strong portfolio, assisting companies like Google and British Airways in scaling social messaging interactions. The deal, anticipated to finalize in Verint's third fiscal quarter, reflects an industry shift towards personalized messaging for better customer experience.

Positive

• Acquisition of Conversocial for $50 million enhances Verint's digital-first customer engagement capabilities.
• Expansion of conversational AI offerings facilitates brand interactions across popular messaging channels.
• Conversocial has a proven track record with leading brands like Google and Sephora, likely adding value to Verint's client services.

Negative

• Acquisition price of $50 million may raise concerns regarding immediate ROI or financial impact.
• Dependence on regulatory clearances could delay the acquisition timeline, affecting strategic initiatives.

Verint^® (NASDAQ: VRNT), The Customer Engagement Company^™, today announced the expansion of the digital-first capabilities of its cloud platform through the acquisition of Conversocial. With this expansion, Verint’s market-leading conversational AI provides brands the ability to orchestrate customer journeys with a connected experience across their channels of choice.

The acquisition will expand Verint’s robust support for digital customer engagement with connections to most of the commonly used messaging channels, including Apple Business Chat, Facebook Messenger, Twitter, WhatsApp, and more. Conversocial helps leading brands such as Google, Sephora, British Airways, and Hertz build and scale relationships via the personal touch and convenience of social messaging.

In recent years, customer conversations have shifted from public social channels to one-to-one personalized messaging and brands are increasingly looking for ways to turn messaging into a strategic commerce and care channel for customer experience advantage. According to Dan Miller, lead analyst at Opus Research, “For more than a decade, Conversocial helped brands add social networks and messaging platforms to their marketing and customer support channels. Verint’s clients will now benefit from the combined companies' demonstrated ability to offer AI-infused self-service and assisted service to digital-first customers.”

With the Verint Cloud Platform, brands are able to accelerate digital-first strategies:

• Deploy a wide set of conversational channels
• Use Conversational AI to automate personalized communications on the customer’s channel of choice
• Orchestrate customer journeys across channels of choice
• Connect AI-powered knowledge management across all channels
• Capture conversation, interaction, and experience data from all channels and apply advanced analytics to balance operating cost and customer experience

“Supporting Boundless Customer Engagement that goes beyond traditional care channels, we are reimagining what it means to be The Customer Engagement Company for a digital-first world,” says Verint’s Celia Fleischaker, chief marketing officer. “Adding new conversational AI and messaging channels to our digital engagement portfolio is another step in this direction and we welcome the Conversocial employees to Verint.”

“We help brands deliver better customer experiences over messaging channels, while improving brand efficiency and customer satisfaction,” says Conversocial’s Ido Bornstein-Hacohen, CEO. “We are excited to join forces with Verint, a leader in customer engagement to help organizations achieve their digital-first strategies.”

Transaction Details

Verint has agreed to acquire Conversocial, which has approximately 80 employees with offices in New York and London, for $50 million in cash, subject to certain closing adjustments. The acquisition is expected to close in Verint’s third fiscal quarter, subject to customary closing conditions including the receipt of required regulatory clearances.

About Verint

Verint^® (Nasdaq: VRNT) helps the world’s most iconic brands – including over 85 of the Fortune 100 companies – build enduring customer relationships by connecting work, data and experiences across the enterprise. The Verint Customer Engagement portfolio draws on the latest advancements in AI and analytics, an open cloud architecture, and The Science of Customer Engagement^™ to help customers close The Engagement Capacity Gap^™.

Verint. The Customer Engagement Company^™. Learn more at Verint.com.

This press release contains “forward-looking statements,” including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on management's expectations that involve a number of risks, uncertainties and assumptions, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. For a detailed discussion of these risk factors, see our Annual Report on Form 10-K for the fiscal year ended January 31, 2021, and other filings we make with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release and, except as required by law, Verint assumes no obligation to update or revise them or to provide reasons why actual results may differ.

VERINT, THE CUSTOMER ENGAGEMENT COMPANY, BOUNDLESS CUSTOMER ENGAGEMENT, THE ENGAGEMENT CAPACITY GAP and THE SCIENCE OF CUSTOMER ENGAGEMENT are trademarks of Verint Systems Inc. or its subsidiaries. Verint and other parties may also have trademark rights in other terms used herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210810005302/en/

FAQ

What is the significance of Verint's acquisition of Conversocial?

The acquisition enhances Verint's digital-first customer engagement capabilities by integrating Conversocial's conversational AI offerings.

How much did Verint pay for Conversocial?

Verint agreed to acquire Conversocial for $50 million.

When is Verint's acquisition of Conversocial expected to close?

The acquisition is anticipated to close in Verint's third fiscal quarter, subject to customary closing conditions.

What companies have benefited from Conversocial's services?

Conversocial has provided services to notable brands like Google, Sephora, and British Airways.

How will the acquisition impact Verint's services?

The acquisition is expected to expand Verint's ability to support digital customer engagement across multiple messaging channels.