ECI Telecom Group provides optical transport and SDN/NFV solutions and in addition to the cash pay out, ECI stockholders will also receive $31 from ECi’s sale of real estate assets.
Through this acquisition Ribbon and ECI will form a leading-edge solutions provider with a predicated combined revenue of over $900 million, serving customers across 140 countries.
“The ECI acquisition will extend Ribbon’s reach into the networking market and propel us into the global 5G market,” said Daryl Raiford, chief financial officer of Ribbon. “ECI brings world class networking technology and a proven track record of success in winning top customers in direct competition with major industry players. 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 create new revenue opportunities to drive growth, provide our customers and partners with a broader solutions portfolio, and generate significant long-term value for our stockholders.”
Under the terms of the agreement, Ribbon will buy all outstanding equity of ECI. . Ribbon will issue 32.5 million shares of its common stock to ECI stockholders and provide $324 million of net cash consideration. ECI stockholders are expected to own approximately 23 percent of the combined company on a fully diluted basis.
“We are excited to join forces with Ribbon, bringing together Ribbon’s and ECI’s rich portfolios of communications solutions. Both companies enjoy a distinguished operating history and are trusted suppliers to the world’s leading telecommunication service providers and enterprises,” added Darryl Edwards, president and chief executive officer of ECI. “We aim to create a powerhouse company that offers world-class products for an enhanced customer experience, benefiting our combined global customer base.”
In related news, Ribbon’s Bita Milanian, senior vice president of global marketing, was named winner of the Agent of Change Award at the 2019 Global Women in Telco and Tech Awards.
