Sonus Networks has re-emerged from the completion of its merger with GENBAND with a new trading name: Ribbon Communications.
The US-headquartered cloud and real-time communications technology specialist revealed in May it had struck a deal to merge with the enterprise network transformation and real-time communications solutions provider, with the deal officially closing on 27 October and the new entity being unveiled on 30 October.
The transaction valued the combined company at an enterprise value of approximately US$745 million.
The merger was aimed at combining Sonus' software-based real-time communication virtualisation, cloud-based session initiation protocol (SIP) and 4G/voice-over LTE solutions with GENBAND's network modernisation, unified communications, mobility and embedded communications solutions.
It was thought that, together, Sonus and GENBAND would be better positioned to enable network transformations to IP and cloud-based networks for communication service providers and enterprise customers, thanks in part to a broader and deeper global sales footprint globally.
Now, with the merger complete, each company has become a wholly owned subsidiary of a parent company, also named Sonus Networks, formed for the purposes of the transaction. Sonus Networks also announced that, effective 30 October, it has started conducting business as Ribbon Communications.
The company will continue to trade on the Nasdaq Global Select Market under the ticker SONS, until its new corporate name, Ribbon Communications, and its new ticker symbol (RBBN) become effective, which is anticipated to be by the end of 2017.
Sonus Networks said it is registered to do business as Ribbon Communications in various jurisdictions and expects to formally change its legal name to Ribbon Communications Inc. by the end of 2017.
“Today is a tremendous day as we bring together two companies that have been at the forefront of real-time communications into a single, unified entity focused on serving our customers and moving the industry forward,” Ribbon Communications’ president and CEO, Ray Dolan, said,
“Our new name offers a fresh start and embodies our ambition to build one of the largest, most innovative, dedicated and secure global real-time communications organisations on the market.
“The new Ribbon Communications name reflects the unparalleled suite of real-time communications software solutions that the combined company brings to the market,” he said.
The merger sees former Sonus Networks and GENBAND shareholders each own approximately 50 per cent of the parent company, which had approximately 102 million shares outstanding post close.
GENBAND’s former equity holders also received a US$22.5 million unsecured note as part of the transaction consideration.
The combined company is expected to see annual cost synergies of US$40 million to US$50 million in 2018 and to drive cash flow from operations in the first year after closing.