RBC Capital downgrades Verint Systems stock rating as Thoma Bravo acquisition announced

Investing.com - RBC Capital downgraded Verint Systems (NASDAQ:VRNT), currently valued at $1.2 billion with a P/E ratio of 23.9x, from Outperform to Sector Perform and lowered its price target to $20.50 from $29.00 following the announcement of a definitive acquisition agreement.

Verint Systems has entered into a definitive agreement to be acquired by Thoma Bravo for approximately $2 billion in cash, representing $20.50 per share. The transaction, which values the company at a significant premium to its current free cash flow yield of 9%, has already received approval from Verint’s Board of Directors. According to InvestingPro analysis, the company has demonstrated strong financial health with a Piotroski score of 7.

The deal is expected to close by Verint’s fiscal year-end in January 2026, subject to standard closing conditions. After the acquisition completes, Verint will be combined with Calabrio, an existing Thoma Bravo portfolio company.

RBC Capital noted that the combined entity will deliver an AI-powered customer experience solution. The firm described the acquisition price as "reasonable" in its assessment of the transaction.

Given that approximately two months have passed between initial press reports about a potential deal and the board’s approval of this transaction, RBC Capital does not anticipate another bidder emerging for Verint Systems.

In other recent news, Verint Systems announced its agreement to be acquired by Thoma Bravo in a $2 billion all-cash transaction. This acquisition values Verint at $20.50 per share, representing an 18% premium to its 10-day volume weighted average share price before media reports of the sale surfaced. Following this announcement, several analyst firms adjusted their ratings and price targets for Verint Systems. Needham downgraded the stock from Buy to Hold, citing the acquisition deal, while TD Cowen also downgraded it to Hold and reduced its price target from $33.00 to $20.50. Similarly, Rosenblatt lowered its price target to $20.50 from $40.00 but maintained a Neutral rating. Meanwhile, Evercore ISI kept its "In Line" rating with a $23.00 price target, noting that any ongoing discussions were speculative. These developments highlight the significant impact of the acquisition news on Verint’s market perception.

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