Israeli ECI mergers with Ribbon Communications in a deal worth $ 486 million

Veteran Veteran communications equipment company ECI, controlled by Shaul Shani, reports a merger agreement with Ribbon Communications for 32.5 million shares of Ribbon, plus $ 324 million in cash. In addition, as part of the agreement, ECI's shareholders will receive up to $ 31 million for real estate assets owned by the company.
Sovereign investors, who operate in the field of secure cloud communications, are responding harshly to the move. Its stock (NYSE: RBBN) plunged NASDAQ by about 25%, reflecting a market cap of $ 347 million. The deal, including the stock component, reaches $ 486 million, given that Sovereign's share is trading at a value of As of the announcement of the merger, however, the fall now cuts Ribbon's share to $ 3 a share.
ECI shareholders, led by Darryl Edwards, CEO, are expected to hold about 23% of the merged company. The announcement from the companies indicates that the merged company will generate $ 900 million in revenue, customer service in more than 140 countries and 4,000 employees Worldwide, Barclays has been the financial advisor for ECI's behalf.
Established in 1961 and owned by Saul Shani, who acquired control over 12 years ago, ECI is a global provider of products and solutions for telecommunications and data networks - for service providers, infrastructure and government agencies, as well as defense and security customers. The company, which operates Key Hope, previously considered an Israeli high-tech flagship, has experienced a number of crises over the past decade, prompting it to change its strategy a few years ago to focus on optical and data transmission solutions.
ECI shares were discontinued from NASDAQ trading in 2007 - after 25 years as a public company there. In 2014, Shani bought Ashmore's share (which came out of the $ 1 billion loss) and has been the sole owner of the company ever since., controlled by Shaul Shani, reports a merger agreement with Ribbon Communications for 32.5 million shares of Ribbon, plus $ 324 million in cash. In addition, as part of the agreement, ECI's shareholders will receive up to $ 31 million for real estate assets owned by the company.
Sovereign investors, who operate in the field of secure cloud communications, are responding harshly to the move. Its stock (NYSE: RBBN) plunged NASDAQ by about 25%, reflecting a market cap of $ 347 million. The deal, including the stock component, reaches $ 486 million, given that Sovereign's share is trading at a value of As of the announcement of the merger, however, the fall now cuts Ribbon's share to $ 3 a share.
ECI shareholders, led by Darryl Edwards, CEO, are expected to hold about 23% of the merged company. The announcement from the companies indicates that the merged company will generate $ 900 million in revenue, customer service in more than 140 countries and 4,000 employees Worldwide, Barclays has been the financial advisor for ECI's behalf.
Established in 1961 and owned by Saul Shani, who acquired control over 12 years ago, ECI is a global provider of products and solutions for telecommunications and data networks - for service providers, infrastructure and government agencies, as well as defense and security customers. The company, which operates Key Hope, previously considered an Israeli high-tech flagship, has experienced a number of crises over the past decade, prompting it to change its strategy a few years ago to focus on optical and data transmission solutions.
ECI shares were discontinued from NASDAQ trading in 2007 - after 25 years as a public company there. In 2014, Shani bought Ashmore's share (which came out of the $ 1 billion loss) and has been the sole owner of the company ever since.