Business security solutions provider Nice Systems agreed Thursday to acquire Swiss-based Fast Video Security AG for up to $33 million.
Under the agreement, Nice will pay $21m. in cash, at closing, for all the shares of FAST and as much as $12m. over the next three years upon the achievement of certain "performance milestones."
The deal was expected to close early next year.
Nice CEO Haim Shani said the acquisition strengthens the company's public and security business by enhancing its offering to the digital video security market.
"With the acquisition of Fast, we are continuing the positive momentum of our strategy for external growth that complements our organic growth," Shani said. "This transaction is the next logical step after the recent success of the Dictaphone CRS integration." Nice closed its purchase of California-based Dictaphone CRS in June for $38.5m.
Fast develops innovative video systems for security and surveillance purposes.
Nice said the business would strengthen its position in the video security market with a full suite of smart IP-based solutions and technologies that are complementary to its own digital video offering.
"The acquisition will also increase our footprint in Europe
and APAC with world-class distribution channels and partners, and with new prestigious customers," the company said in a statement.
Nice said it expects the acquisition to add $10m. to its top-line in 2006, increasing the company's revenue guidance to between $36.5m. and $37m. The deal won't effect earnings, however, and company reiterated its previous guidance for proforma earnings per share of between $2.05 and $2.15 per diluted share.
Last week, Nice reported third quarter revenue of $82.7m., showing 30 percent growth over the same period a year earlier. Proforma net income was $9m., or $0.43 per fully diluted share, up from $5.4m., or $0.29 per share, in the same quarter of 2004.