ECI Telecom agrees to acquisition in $1.2 billion deal
(Pittsburgh Post-Gazette (KRT) Via Thomson Dialog NewsEdge) Jul. 2--Israeli based telecommunications firm ECI Telecom Ltd., that has a small research and development operation in Robinson, said that it agreed to be acquired by the Swarth Group and Ashmore Investment Management Ltd. in a $1.2 billion all-cash deal.
The deal provides that ECI shareholders will receive $10 per share in cash at closing and that the firm can continue to consider competitive buyout offers under the terms of the agreement until July 31. If another offer is accepted, a breakup fee would be payable to the buyers.
Officials could not be reached to comment on how ECI's local office would be affected by the pending deal.
Formerly known as Laurel Networks before its 2005 sale to ECI for $88 million, the firm's Robinson division was revamped into a research and development operation in February, after failing to meet sales targets.
ECI shares closed up 38 cents or over 4 percent at $9.53.
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