Ribbon is expecting a heavy return on investment
Ribbon Communication Inc., a top player in the international market of safe and smart cloud communications has announced the merger with ECI Telecom Group Ltd (ECI). ECI is an optical transport and SDN/NFV solution provider for enterprises and data center operators. The deal was finalized for 32.5 million shares of Ribbon and 324 million US dollars in cash.
The shareholders of ECI will get about 31 million US dollars from the sale of real estate assets. With this new deal, the companies will make a combined effort to provide a strong solution that is going to generate revenue of 900 million US dollars. The plan is to serve 140 different countries and employing 4000 employees across the globe.
The ribbon is expecting enhanced growth and improvement in the position of the company, as it is planning to expand its portfolio further from voice applications and move over to data application and optical networking.
The merger will improve networking in the global market
Daryl Raiford, CFO of Ribbon said, “The ECI acquisition will extend Ribbon’s reach into the networking market and propel us into the global market. 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.”
Darryl Edwards, President, and CEO of ECI said, “We are excited to join forces with Ribbon 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. We aim to create a powerhouse company that offers world-class products for enhanced customer experience, benefiting our combined global customer base.”
