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Sonus Networks, Genband agree to 50-50 merger

Published 05/23/2017, 07:43 AM
© Reuters.  Sonus Networks, Genband agree to 50-50 merger
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  • Network equipment vendors Sonus Networks (NASDAQ:SONS) and Genband agree to a merger of equals, creating a new company with an enterprise value of ~$745M.
  • SONS expects the deal to be substantially accretive to non-GAAP EPS in 2018 and generate significant cash flow from operations, plus $40M-$50M projected annual cost synergies by the end of 2018.
  • The combined company will issue ~50M shares to Genband's equity owners and $22.5M in the form of an unsecured note; SONS and Genband shareholders will each own ~50% of the combined company.
  • Now read: Nokia (HE:NOKIA): An Opportunity To Lock In Gains


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