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VERINT TO BUY KANA SOFTWARE

Mark Duffell, Kana SoftwareVerint Systems is buying Kana Software, a portfolio company of Accel-KKR, for $450 million. The private equity firm paid $48.9 million cash for Kana in 2009 so investors have done well. Kana specializes in customer service products, including self-service tools such as chat and web self-service, along with social media monitoring. Verint markets what it calls Actionable Intelligence solutions to capture and analyze customer transactions.

It also markets security products. This deal is of interest as much for the execs involved as for the deal itself. Kana's president, Mark Duffell, left Epicor early in 2008 when Tom Kelly joined the ERP company as a short-term CEO. Duffell joined an Accel-KKR-backed group and took the job in 2009 after Accel-KKR purchased and privatized Kana. Chief Marketing Officer James Norwood, who joined Kana in June 2011, was with Epicor and its predecessor Platinum Software from June 1996 through June 2011 and was SVP of worldwide product marketing at the end. Also at Kana is Arleigh Taylor, VP of global partners, since January 2011. Taylor was with Epicor from 1995 through 2004, then spent almost seven years with Microsoft, ending his career there as director of Dynamics ERP Technical Sales - Western U.S. from July 2009 through January 2011. Kana has been one of the havens for those subject to the Epicor diaspora – the other being KeyedIn Solutions. It's when researching items like this that I am dumfounded by the sheer volume of execs and managers from Epicor who left after it was merged with Activant in 2011. Kana's sales had peaked before it was acquired. It hit $65 million in fiscal 2008, but was a roughly $50 million run rate in 2009.

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