Ribbon Communications Inc. Completes Merger with ECI Telecom Group Ltd.
Ribbon Communications Inc., a global software leader in secure and intelligent cloud communications, has completed its previously announced acquisition of ECI Telecom Group Ltd. , a global provider of end-to-end packet-optical transport and SDN/NFV solutions for service providers, enterprises, and data center operators.
The combination of Ribbon and ECI creates an industry-leading communications software and networking company with a comprehensive portfolio of advanced voice, security, data and optical networking solutions. In addition to extending the company’s solutions portfolio into adjacent markets, the merger advances Ribbon’s strategy of expanding into the service provider 5G data domain with bundled network analytics, intelligence and security offerings. The newly combined company allows Ribbon to enhance and broaden its existing customer offerings with ECI’s industry-leading packet optical transport solutions.
The combination also enables Ribbon to significantly increase its scale, total addressable market and global footprint in service provider networks, enterprises and critical infrastructure companies, such as utilities and data center operators. In addition, the merger allows Ribbon to expand its relationships with fixed and mobile service providers, while also enabling the company to quickly capitalize on the high-growth 5G market with ECI’s market-ready solutions.
"We are thrilled to welcome ECI to the Ribbon family,” said Bruce McClelland, President and Chief Executive Officer of Ribbon. “Our expanded product offering combines ECI’s leadership in packet optical networking with our existing proven portfolio of software-based, real-time communications security, analytics and digital transformation solutions. Our new organization will leverage the strength and presence of our global sales force to create a very formidable market leader in the communications industry.”
McClelland added, “ECI’s solutions are specifically designed to address the rapidly growing 5G ecosystem. We look forward to working closely with all of our employees to leverage Ribbon’s strong foundation to build sustained, long-term growth.”
“This transformational transaction accelerates our strategy to position the company into higher growth markets,” said Daryl Raiford, Chief Financial Officer of Ribbon. “The combination of Ribbon and ECI offers our customers world-class products that we believe will drive Ribbon’s growth, profitability and cash flow. We are immediately focused on our integration efforts to unlock revenue expansion and drive shareholder value.”
Ribbon expects to provide updated financial guidance, which will include the ECI acquisition, during its first quarter 2020 earnings call.
TAP Advisors and Citizens Capital Markets acted as financial advisors to Ribbon and Latham & Watkins LLP and GKH Law Offices served as Ribbon’s legal advisors. Barclays acted as a financial advisor to ECI and Davis Polk & Wardwell LLP and FBC & Co. served as ECI’s legal advisors. Citizens Bank, N.A. and Santander Bank, N.A., joint lead arrangers and bookrunners, provided the debt financing for the transaction.
source ribboncommunications
Industry: Unified Communications
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