Veraz Networks Inc. (Nasdaq:VRAZ) will merge with private Canadian company Dialogic Corporation.
Veraz develops bandwidth optimization and next generation switching products and Dialogic develops interactive mobile video services and applications. Veraz was created in 2002 through a merger of an ECI Telecom Ltd. unit and Nexverse, a struggling US start-up. Veraz raised $70 million at a company value of $316 million in its IPO in 2007.
Veraz slipped into crisis in 2008, issued several profit warnings and fired a third of its employees, including a few in Israel. The share rose 1% in premarket trading today to $1.01, giving a market cap of $44 million.
The merged company will be called Dialogic and will continue to be traded on Nasdaq. Veraz will allot shares to Dialogic resulting in Dialogic shareholders owning 70% of the new corporation and Veraz shareholders owning 30%.
Dialogic is based in Montreal The companies said they expect the merged company to have $250 million revenue and that there would be consolidation when the deal is completed.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2010
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