The deal would see the pair create a single company with more than 4,000 employees across the world
US based cloud provider, Ribbon Communications is set to acquire ECI Telecom Group for around $455 million.
The deal will see Ribbon Communications purchase ECI for 32.5 million shares of Ribbon stock, plus around $324 million in cash.
“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.”
The deal will create a large scale, leading edge solutions provider, with annual revenue of over $900 million, serving customers in more than 140 countries.