The ratings on Melville, N.Y.-based Verint Systems Inc. reflect the company's acquisitive growth strategy, high leverage, and noncompliance with SEC filing regulations. These factors are offset partially by favorable market growth, a predictable and growing revenue base stemming from high renewal rates, and more balanced product and service offerings following the transaction. Verint operates in a competitive security and business intelligence industry, with vendors ranging from large diversified companies to small private point solution vendors. Verint's rapid growth has been the result of organic growth and acquisitions, having completed ten acquisitions since 2002. The largest acquisition was Witness Systems Inc. in May 2007, which gave Verint scale efficiencies that improved its margins and market position, with an approximately 47% market
