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Genband, Sonus Networks to Merge

Merge

Genband and Sonus Networks are merging to create a $745 million company focused on next-generation communications networking.

The combined company will have increased scale and market reach across products, customers and geographies. Genband and Sonus shareholders will each own about 50 percent of the combined company.

Genband's Patrick JoggerstPatrick Joggerst, Genband’s executive vice president of global sales and marketing, tells Channel Partners the merger is a “great move for our customers, partners, employees and the industry as a whole.” The transaction is expected to close in the second half of 2017, subject to Genband and Sonus shareholder approval, listing of the combined company’s common stock on Nasdaq, Hart-Scott-Rodino review and other customary closing conditions.

“The combination sensibly brings together two complementary businesses and world-class teams that will be well positioned to offer even more value to our customers and partners when it comes to quickly and securely launching new real-time communications offerings,” Joggerst said. “Together, we will have greater resources across the globe to support our customers’ needs, through a broader and deeper footprint, increased ability to invest in growth, more efficient and effective R&D, and smoother migration paths to the virtualized all-IP world.”

The merger combines Sonus’ software-based position in real-time communication virtualization, cloud-based SIP and 4G/voice-over LTE offerings and security initiatives with Genband’s network modernization, UC, and mobility and embedded communications offerings. Genband and Sonus will combine under a newly formed holding company.{ad}

“Together, Sonus and Genband create a market leader in real-time communications with enhanced capabilities to support our customers’ move to cloud-based solutions,” said Raymond Dolan, Sonus’ president and CEO. “This is a strategically and financially compelling transaction for Sonus and we are confident that together with Genband we will achieve our growth initiatives faster and more fully than either company could do on its own.”

Together, the combined company will have a global sales footprint in 27 countries. Also, it will have “little product overlap” and will be well-positioned to deliver comprehensive offerings to service providers and enterprises migrating to a virtualized all-IP world, according to both companies.


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