Tdsoft and VocalTec Sign Acquisition Agreement
TMCnet VoIP Minute Watch Columnist
VoIP gateway provider Tdsoft Ltd. and telecom equipment provider VocalTec Communications Ltd. announced on Friday they signed an agreement among the companies and shareholders of Tdsoft to be issued VocalTec shares in exchange for all of the share capital of Tdsoft. Once the transaction is completed, Tdsoft shareholders will own 75 percent of the outstanding share capital of VocalTec, while VocalTec shareholders will own the remaining 25 percent. VocalTec will remain a publicly-held company and Tdsoft will become a wholly-owned subsidiary thereof.
The companies expect to close all acquisition-related procedures by early December. Completion of the transaction will be subject to the approval of VocalTec's and Tdsoft's shareholders and the obtaining of certain regulatory and other approvals.
"Following completion of the transaction, Cisco Systems International BV (a subsidiary of Cisco Systems Inc.) and HarbourVest Partners, LLC, currently major shareholders of Tdsoft, and Deutsche Telekom, currently a major shareholder of VocalTec, are expected to hold approximately 36 percent, 20 percent and 3.8 percent, respectively, of VocalTec's share capital," noted the companies' news release.
Upon completion of the transaction, Ilan Rosen, Tdsoft's current chairman of the Board, will be appointed as VocalTec's chairman of the Board, and the company's management team will be led by Joseph (Yosi) Albagli, the current president & CEO of Tdsoft.
"We are pleased to have reached this agreement with Tdsoft and its shareholders, and believe this transaction will initiate important new business opportunities with carriers and new channels for both companies. We believe this transaction is in the best interests of both our customers and shareholders," commented Elon Ganor, CEO and chairman of VocalTec.
VocalTec made news back in June when it launched a new release of its Essentra Softswitch Platform. The latest release offers a high-density Class 5 alternative platform with up to 250,000 subscribers supported on a single chassis, full redundancy within a NEBS Level3 package and a rich IP-Centrex solution fully integrated within the softswitch.
"Carriers cite lower cost and innovative services as the primary motivators for migrating to next generation networks," said Moti Suess, COO, VocalTec back then. "However they expect the same 'five nines' system availability and high density scalability that they are accustomed to. Our latest Essentra solution fulfills these expectations."
VocalTec Communications Ltd.
Johanne Torres is contributing editor for TMCnet. To see more articles by Johanne Torres, please visit:
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