Tekelec and Nice entered into an agreement for the purchase by Nice from Tekelec of all of the stock of Tekelec's wholly owned subsidiary, IEX

April 28, 2006

2 Min Read

MORRISVILLE, N.C. -- Tekelec (NASDAQ: TKLC) and NICE Systems (NASDAQ: NICE) announced that they have entered into a definitive agreement for the purchase by Nice Systems from Tekelec of all of the stock of Tekelec's wholly owned subsidiary, IEX Corporation, a leading global provider of workforce management and optimization technology for contact centers. The purchase price is $200 million in cash, subject to a possible working capital adjustment. The transaction is scheduled to close during the second quarter of 2006, and the closing is subject to customary regulatory approvals and closing conditions.

Commenting on the sale, Frank Plastina, President and CEO of Tekelec said, "We are very pleased with this transaction because it converts a non-telecom business unit into cash at an attractive valuation and under favorable terms. IEX has been an important contributor to our financial performance for the last several years, but it was not a component of our long-term telecom systems growth strategy. This deal will significantly strengthen our balance sheet and enhance our ability to consider complementary strategic opportunities in our core business. The price and terms of this transaction confirm IEX's position as a leading solution provider in a rapidly consolidating industry. We believe that NICE Systems is best suited for the IEX acquisition, due to the clear synergies in market leadership, technology innovation, engineering expertise, and management experience.

"I would like to thank Debbie May and her management team for their hard work in building IEX into an industry leader. We believe that IEX's customers and employees will be very well served as a result of this transaction."

Tekelec has no immediate plans for the utilization of the net proceeds it expects to receive upon closing from this transaction.

Haim Shani CEO of NICE Systems commented, "We are very happy to have IEX join the NICE family. IEX was the natural choice for us in expanding and accelerating the execution of our strategy to lead the Insight from Interactions(TM) revolution in the contact center and enterprise. We are excited about redefining our market space together and introduce a paradigm shift in how contact center management and enterprise executives make decisions, monitor and improve performance."


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