Varonis Systems opts for physical settlement of convertible notes

NEW YORK - Varonis Systems , Inc. (NASDAQ:VRNS), a prepackaged software services company with a market capitalization of nearly $5 billion, announced today that it has elected to change its settlement method for the 1.250% Convertible Senior Notes due in 2025. According to InvestingPro data, the company operates with a moderate level of debt, maintaining a healthy current ratio of 1.24. The company will now use "Physical Settlement" for conversions of these notes, a move that will affect all conversions post the notice date, as per the terms outlined in their May 11, 2020 Indenture with U.S. Bank National Association, the Trustee.

This decision means that the holders of the convertible notes will receive shares of Varonis Systems' common stock directly when they choose to convert their notes. Previously, the "Default Settlement Method" could have involved a combination of cash and stock or other methods as outlined in the Indenture. The company's notification to the Trustee, the Conversion Agent, and the Holders marks the official shift to this new settlement method. The company has demonstrated strong operational efficiency with impressive gross profit margins of 83% and revenue growth of 10.4% over the last twelve months.

Varonis Systems, incorporated in Delaware with headquarters on Broadway in New York, is known for providing cybersecurity solutions that protect sensitive data from insider threats and cyberattacks. While the company's move to physical settlement could reflect its current stock performance or capital strategy, InvestingPro analysis indicates the stock is currently trading above its Fair Value. Notably, analysts remain optimistic about the company's prospects, with expectations of profitability this year. For deeper insights into Varonis Systems' financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

Investors and note holders are advised to review the terms of the Indenture for a full understanding of the implications of this change. The announcement was made in compliance with the Securities Exchange Act of 1934 and was signed by Guy Melamed, Varonis Systems' Chief Financial Officer and Chief Operating Officer.

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