...December 10, 2020 NEW YORK (S&P Global Ratings) Dec. 10, 2020--Verint Systems Inc. plans to spin off its cyber intelligence business in early 2021, shortly after the end of its fiscal year (Jan. 31). The segment constitutes a meaningful portion of revenues ($448.6 million for the trailing 12 months ended Oct. 31, 2020) and moderate contributions to gross profit (approximately $307.8 million). The spin-off will affect Verint's scale, diversification, and synergies (i.e., procurement, overhead functions, and alternative propulsion). Somewhat offsetting this is our expectation that continued investments in cloud-based solutions should provide margin growth. While the pro forma capital structure is unclear, we understand there will be no material change to Verint's debt burden. Following the spin-off, we expect the company to adhere to its financial policy and capital allocation discipline. We will revisit our ratings on Verint when the future capital structure becomes clearer....
