Key facts
- Brookfield is reportedly in talks to buy Nice Actimize for $2 billion.
- Nice Actimize is a specialist in financial crime and compliance solutions.
- Five bidders, including Advent International and Veritas Capital, advanced to the second round of the sale process for Actimize.
- Actimize generated $133 million in revenue in the first quarter, a 23% year-on-year increase.
- Nice acquired Actimize in 2007 for $280 million.
Brookfield Asset Management is reportedly in discussions to acquire Nice Actimize, a division of Nice that specializes in financial crime and compliance software, for approximately $2 billion. The potential deal comes as Nice, a provider of cloud customer engagement, and AI solutions, explores divesting non-core assets to focus on its core business.
Nice has been working with advisers for several months on a process for "non-CX assets," which include financial crime and compliance solutions, according to CEO Scott Russell. He stressed that the process remains exploratory and no decisions have been made. This statement followed reports that five bidders had advanced to the second round of the sale process, with non-binding offers around a $2.5 billion valuation.
Actimize, originally an Israeli developer of financial risk management solutions including anti-money laundering and fraud detection, was acquired by Nice in 2007 for $280 million. It now accounts for about 17% of Nice's revenue but contributes a disproportionately high 29% of its profit. In the first quarter, Actimize generated $133 million in revenue, a 23% increase year-on-year.
Potential buyers, including private equity firms Advent International, Veritas Capital, New Mountain Capital, and Stone Point Capital, as well as strategic player SymphonyAI, have progressed to the due diligence phase. However, some bidders were reportedly deterred by a high valuation and the absence of audited financial statements, which could impact financing options.