Sonus, GENBAND Plot Merger

May 24th, 2017 by · Leave a Comment

Two of the industry's software-based voice vendors have decided to join forces. GENBAND and Sonus announced today plans to combine into one company.

Sonus specializes in real-time communication virtualization, cloud-based SIP, and 4G/VoLTE related software. For its part, GENBAND focuses on network modernization, UC, and mobility/embedded communications solutions. The combination of those two complementary portfolios will cover a wider swath of cloud-based communications capabilities. VoIP has come a long way since we called it VoIP, hasn't it?

If it all goes through, shareholders of both Sonus and Genband will own 50% of the combined company. The merger values the company at $745M based on Sonus' common stock price of $7.79 on Tuesday.

The pro forma numbers for the combined company would be $680M in revenue and $50M in EBITDA. From that base they expect to derive $40-50M in annual cost synergies by the end of 2018. They expect EBITDA to rise from about $100M after synergies toward $140M in 2020.

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Categories: Mergers and Acquisitions · Telecom Equipment · Unified Communications · VoIP

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