inContact, Inc. (the “Company”)
previously entered into an Agreement and Plan of Merger (the “Merger Agreement”), dated as of May 17, 2016, by and
among the Company, NICE Ltd. f/k/a NICE-Systems Ltd., a company organized under the laws of the State of Israel (“Parent”),
and Victory Merger Sub Inc., a Delaware corporation and a wholly owned indirect subsidiary of Parent (“Merger Subsidiary”).
This Current Report on Form 8-K is being filed in connection with the completion on November 14, 2016 (the “Closing Date”)
of the transactions contemplated by the Merger Agreement (the “Merger”).
||Entry into a Material Definitive Agreement.|
In connection with the closing of the Merger,
on November 14, 2016, Parent, as a guarantor, and NICE Systems Inc., as the borrower, entered into a $550 million senior secured
credit agreement with a syndicate of lenders, with JPMorgan Chase Bank, N.A. acting as the administrative agent for such lenders
(the “Credit Facility”). The Credit Facility consists of a $475 million term loan facility (the “Term Facility”),
the proceeds of which have been used to finance the Merger and pay fees and expenses in connection therewith, and a $75 million
revolving loan facility (the “Revolving Facility”), the proceeds of which may be used for working capital and other
general corporate purposes. Unless terminated earlier, each of the Term Facility and the Revolving Facility will mature on November
14, 2021. The obligations under the Credit Facility are jointly and severally guaranteed by Parent and most of Parent’s Israeli
and U.S. subsidiaries (including the Company and its U.S. subsidiaries) on an unconditional basis pursuant to a customary guarantee
agreement, and are secured by substantially all of the assets of such guarantors and of Nice Systems Inc. pursuant to a customary
security agreement, in each case subject to customary exceptions.
On November 14, 2016, the Company entered
into a first supplemental indenture (the “First Supplemental Indenture”) with Wells Fargo Bank, National Association,
as Trustee (the “Trustee”), supplementing the Indenture between the Company, and the Trustee, dated as of March 30,
2015 (the “Indenture”) governing the Company’s 2.50% Convertible Senior Notes due 2022 (the “Convertible
Notes”). The First Supplemental Indenture was executed in connection with the closing of the Merger pursuant to the terms
of the Indenture and provides that, at and after the effective date of the Merger, the consideration due upon conversion of each
$1,000 principal amount of Convertible Notes shall be solely cash in an amount equal to the applicable Conversion Rate as defined
in and as may be increased in accordance with the Indenture multiplied by the consideration under the Merger Agreement of $14.00
A copy of the First Supplemental Indenture
is filed as Exhibit 4.2 hereto and is incorporated herein by reference. The description of the First Supplemental Indenture contained
herein is qualified in its entirety by the full text of such exhibit.
||Completion of Acquisition or Disposition of Assets.|
On November 14, 2016, the Company completed
its previously announced Merger. Pursuant to the Merger Agreement, Merger Subsidiary merged with and into the Company, with the
Company surviving as a wholly-owned indirect subsidiary of Parent.
Pursuant to the Merger Agreement, at the
effective time of the Merger (the “Effective Time”), each share of the Company’s common stock, par value $0.0001
per share (“Company Stock”) issued and outstanding immediately prior to the Effective Time (other than shares owned
by the Company or any of its subsidiaries, Parent, Merger Subsidiary or any other subsidiary of Parent) was converted into the
right to receive $14.00 in cash, without interest, and less any applicable withholding taxes (the “Merger Consideration”).
The aggregate Merger Consideration paid
by Parent was approximately $900 million, without giving effect to related transaction fees and expenses. Parent funded the aggregate
Merger Consideration through cash on hand and the proceeds of the Term Facility.
The foregoing summary of the Merger Agreement
does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, which is
filed as Exhibit 2.1 hereto and incorporated herein by reference.
A copy of the joint press release of the
Company and Parent announcing the completion of the Merger is attached as Exhibit 99.1 hereto and incorporated herein by reference.
||Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.|