wiredInUSA January 2020

Merger will focus on US and Japan M A K I N G T H E NEWS

The cloud communications provider Ribbon Communications has entered into an agreement to acquire the software-defined networking (SDN), network functions virtualization (NFV) and packet-optical transport provider ECI Telecom Group. The transaction, via merger, is said to be worth 32.5 million shares of Ribbon common stock and $324 million in cash. ECI stockholders will also receive around $31 million from the sale of real estate assets. The merger is designed to help the companies create a single leading- edge solutions provider with an anticipated combined annual revenue of over $900 million. The combination will expand the company’s product portfolio to include data applications and optical networking. The merged companies will focus on North America and Japan, and serving the 5Gmarket.

Daryl Raiford, chief financial officer at Ribbon, said: “Ribbon has long- standing, deep customer relationships in North America and Japan, which will provide immediate access to ECI solutions into these substantial markets. We believe this combination will … provide our customers and partners with a broader solutions portfolio, and generate significant long-term value for our stockholders.” President and chief executive officer ECI Darryl Edwards added: “Both companies enjoy a distinguished operating history and are trusted suppliers to the world’s leading telecommunication service providers and enterprises. We aim to create a powerhouse company that offers world-class products for an enhanced customer experience.”

The transaction is expected to close in the first quarter of 2020.

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wiredInUSA January 2020