Sonus Networks Announces Completion of GENBAND Merger – Becomes Ribbon
Sonus Networks to change its name to Ribbon Communications Inc.
Sonus Networks, a global leader in secure and intelligent cloud communications, today announced the completion of the Sonus and GENBAND mergers following which each became a wholly owned subsidiary of a parent company formed for purposes of the transaction and renamed Sonus Networks, Inc. In connection with closing the transaction, Sonus Networks also announced that, effective today, it has begun 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 Inc.) and its new ticker symbol (RBBN) become effective, which is anticipated to be by the end of 2017.
The transaction is a merger of equals and former Sonus and GENBAND shareholders each own approximately 50% of the parent company, which had approximately 102 million shares outstanding post close. GENBAND’s former equity holders also received a $22.5 million unsecured note as part of the transaction consideration. The transaction is expected to be substantially accretive to the combined company’s earnings per share in 2018. The combined company is expected to realise annual cost synergies of $40 million to $50 million in 2018 and to drive solid cash flow from operations in the first year after closing.
“Today is a tremendous day as we bring together two companies that have been at the forefront of realtime communications into a single, unified entity focused on serving our customers and moving the industry forward,” said Ray Dolan, President and CEO, Ribbon Communications.
“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. In today’s complexly woven world, we deliver the secure, immersive, contextual experiences that enhance our lives. I’m privileged to lead this new team – together we are stronger than ever and ready to help bring the digital future to life.”
Mr. Dolan added, “With humans more connected in so many different ways than ever before, the realtime communications we rely on must become a more comprehensive, engaging, and all-encompassing experience.”
“Additionally, the new Ribbon Communications name reflects the unparalleled suite of realtime communications software solutions that the combined company brings to the market. Ribbon Communications is ready to deliver the flexibility, security and stability that today’s digital life requires, enabling better business outcomes.”
Sonus Networks will offer a live, listen-only webcast of the conference call (held on 30th October 2017) via the investor section of its website in which supporting materials, including a presentation and supplemental financial and operational data, will be posted.
About the Company
Sonus Networks, Inc. (d/b/a Ribbon Communications) is a company with two decades of leadership in real-time communications. Built on world class technology and intellectual property, the company delivers intelligent, secure, embedded real-time communications for today’s world. The company transforms fixed, mobile and enterprise networks from legacy environments to secure IP and cloud-based architectures, enabling highly productive communications for consumers and businesses. With 64 locations in 27 countries around the globe, the company’s innovative, market-leading portfolio empowers service providers and enterprises with rapid service creation in a fully virtualised environment.