NICE Agrees to Sell Physical Security Business to Battery Ventures

NICE Systems announced that it has agreed to sell its Physical Security business unit to investment firm Battery Ventures.  The business unit provides video surveillance technologies and capabilities to various organizations.  According to the company's press release, "This divestiture will allow NICE to focus on its key markets and enterprise software business as part of the execution of its long-term strategic plan."

The total deal consideration is $100 million comprised of $85 million in cash and up to an additional $15 million based on future performance.  Based on the company's change in fiscal year 2015 guidance, the business unit is estimated to generate 2015 revenues of $71 million.  The implied revenue multiple is 1.2x based on the up-front cash consideration and up to 1.4x based on the total consideration including the earnout.  

The transaction is scheduled to close during the third quarter of 2015.