Verint Systems yesterday announced plans to acquire Global Management Technologies (GMT), an Atlanta-based provider of workforce management (WFM) solutions to bank branches and other customers largely in the financial services area. The deal is worth $24.6 million in cash at closing, and possibly another $17.4 million in cash based on future performances.
"The timing felt right," says Ryan Hollenbeck, senior vice president of global marketing at Verint. "GMT has many compelling areas, particularly its consulting division, partnerships with companies such as Talaris, Qmatic, and Cisco, and robust technology value optimization tools and sales effectiveness tools, which makes it a great match for us."
Combining Verint's software and services with GMT's specialized offerings, which are widely used in retail branch banking environments, would provide customers with a more comprehensive experience, according to Hollenbeck. "Everyone is looking for a one-stop shop," he says. "This [acquisition] means clients in retail financial services will be able to improve their tellers' productivity using branch automation technology as well as improve sales productivity by optimizing the positioning and activities of branch sales staff.">/[>
Simon Angove, CEO of GMT, sees joining Verint will benefit his firm's customers. "This is good news since now customers will get the best of both companies," says Angove, who will be joining Verint as senior vice president of retail financial services.
Current GMT Customers can expect a smooth transition, which will be completed in six months, according to Angove. "It will be business as usual, but our clients can look forward to even greater resources," he says.
The combined resources would allow clients to apply Verint's software and services across wider sectors of their companies. "During a slow period in a bank branch, for example, tellers will be able to route calls using the e-training and technology supplied by Verint, which will reduce idle capacity," Angove says. "By working together, we will take enterprise workforce management to a new level."
Analysts agree that this acquisition is a win-win situation for Verint and GMT. "It's a smart move for both companies," says Keith Dawson, principal analyst at Frost & Sullivan. "GMT is a smaller company that would benefit from joining forces with Verint. From Verint's perspective, GMT provides more avenues for growth in branch banking, contact centers, and back-office operations."
From the customers' viewpoint, Verint's acquisition is a definite win, adds John Ragsdale, vice president of technology research at the Technology Services Industry Association. "When an acquisition leads to more sophisticated technology, consumers will benefit from it," he explains. "If I were a GMT customer, I would be excited about Verint, especially about their voice and text analysis capabilities, which are some of the most sophisticated versions out there right now."
Verint's acquisition of GMT also means it will become a leader in providing workforce management services to the retail branch banking industry, notes Paul Stockford, founder of Saddletree Research. "They will pretty much own it," Stockford says. "From a price perspective, I don't think much will change, but this is huge in terms of prospecting. Whenever Verint goes to a prospective client, they'll now be able to offer quality monitoring, consulting, and many other services."