ECI Telecom Ltd. said Monday it has agreed to be acquired by the Swarth Group and Ashmore Investment Management Ltd. for approximately $1.2 billion.
ECI shareholders will receive $10 per share in cash at closing, representing a premium of approximately 22 percent over ECI’s average closing price during the 30 trading days ending June 15, the company said. Once the transaction closes, ECI said ordinary shares would no longer be traded on NASDAQ.
The Swarth Group is the investment arm controlled by Shaul Shani and Ashmore Investment Management Ltd. is a fund manager.
ECI said last month it was in discussions about a possible acquisition and under terms of the deal the company may still solicit proposals through July 31.
The deal is expected to close by the end of the year and the transaction is subject to shareholder approval, certain regulatory approvals and other customary closing conditions.
ECI Telecom Ltd. www.ecitele.com