Just days after agreeing to buy a Swiss developer of video security products, Nice Systems signaled its expansion is not over by saying on Monday that it is offering 3.5 million American Depositary Shares (ADS) on Nasdaq, the proceeds of which it will use "for future acquisitions."
The Ra'anana-based company, which develops digital recording technology, didn't disclose how much it expects to raise other than to say that the offer is subject to "market and other conditions." Were Nice to sell the ADSs at Friday's closing price of $44.57 it would raise $156 million, while should the underwriters exercise an expected overallotment option of 525,000 ADSs at the same price, the company would raise another $23m.
In morning trading on Nasdaq on Monday, the ADSs were down 1.4% at $43.96. Shares closed down 0.5% at NIS 207.50 on the Tel Aviv Stock Exchange.
An ADS is a security that allows US investors to hold shares in non-US companies and trade them on US stock exchanges. In Nice's offer each ADS will represent one ordinary share.
Nice is selling the ADSs under the framework of a filing it made in August to the Securities and Exchange Commission that provided it with the facility to offer "from time to time" up to $220m. worth of securities.
Nice expects to use the money raised for corporate purposes, including capital expenditures and working capital, as well as for acquisitions. Last Thursday, Nice said it had signed an agreement to buy all the outstanding shares of Swiss company FAST Video Security for at least $21m., a figure that could rise by $12m. over the next three years should the company achieve certain milestones.
This acquisition added to the purchase of the Communications Recording Systems business of California-based Dictaphone for $38.5m., a transaction that was completed in June.
Earlier this month, Nice said pro forma third-quarter net profit rose to $9m. from $5.4m., while revenue rose to $82.7m. from $63.5m.