Thanks for visiting Fibre Systems.

You're trying to access an editorial feature that is only available to logged in, registered users of Fibre Systems. Registering is completely free, so why not sign up with us?

By registering, as well as being able to browse all content on the site without further interruption, you'll also have the option to receive our magazine (multiple times a year) and our email newsletters.

Ribbon acquires ECI to facilitate growth in readiness for 5G

Share this on social media:

Cloud communications provider, Ribbon Communications has entered into an agreement to acquire, via merger, SDN/NFV and end-to-end packet-optical transport provider ECI Telecom Group.

The transaction is worth 32.5 million shares of Ribbon common stock and $324 million in cash. ECI stockholders will also receive around $31 million from the sale of real estate assets.

This merger is designed to help the companies create one powerful, leading edge solutions provider with an anticipated combined annual revenue of more than $900 million. The combination is expected to position the company for growth and to expand its product portfolio to include data applications and optical networking.

The expansion provided by the merger will have an emphasis on North America and Japan, and it will help to ensure that the combined organisation is positioned to serve the 5G market. The services associated with 5G are expected to drive an increase in network demand, and so could require additional investment in the networking layer, an area in which ECI is well placed.

Daryl Raiford, chief financial officer at Ribbon said: ‘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.’

President and chief executive officer at ECI, Darryl Edwards added: ‘We are excited to join forces with Ribbon, bringing 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 an enhanced customer experience, benefiting our combined global customer base.’

The transaction is expenced to close in the first quarter of 2020. Earlier this year, ECI announced a partnership with service distributor, WDC Networks to serve Brazilian internet service providers.

Related news

Recent News

20 January 2020

Angola Cables is trialling Nokia’s Photonic Service Engine 3 (PSE-3) chipset for the first direct subsea optical connection between the USA and Africa.

17 January 2020

LightCounting has released a report looking at the impact of 5G and the cloud on telecom networks, and how these factors are shaping the market.

16 January 2020

Prysmian Group has been awarded a contract by Mexican government-owned Comisión Federal de Electricidad (CFE) to supply fibre cables to connect some of the country’s most remote regions.

08 January 2020

The UK’s communications regulator, Ofcom has revealed its latest major proposals to accelerate investment in full-fibre broadband, under the Wholesale Fixed Telecoms Market Review 2021-26.