Ribbon completes $463m ECI acquisition

Shaul Shani
Shaul Shani

Israeli company ECI provides end-to-end packet-optical transport and SDN/NFV solutions for service providers, enterprises, and data center operators.

US software company Ribbon Communications Inc. (Nasdaq: RBBN) has announced that it has completed its acquisition of Israel's ECI Telecom Group. Based in Petah Tikva, ECI provides end-to-end packet-optical transport and SDN/NFV solutions for service providers, enterprises, and data center operators.

Ribbon, which provides secure and intelligent cloud communications software solutions, is paying ECI's shareholders $324 million cash plus 32.5 million Ribbon shares, bringing the total of the deal at Ribbon's share price today to $463 million. The deal was worth $485 million when first announced in November but since then Ribbon's share price has fallen.

Ribbon president and CEO Bruce McClelland said, "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."

Founded in 1961, ECI is a veteran communications equipment developer controlled by Israeli businessman Shaul Shani. It recently failed in its attempt to hold a flotation on the London Stock Exchange.

Published by Globes, Israel business news - en.globes.co.il - on March 4, 2020

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