Sonus and GENBAND Announce a Merger
Sonus and GENBAND are coming together, having announced an agreement wherein the two companies will combine. Together, they’ll merge Sonus’s cloud and real-time communications software and solutions with the carrier and enterprise network transformation and communication solutions from GENBAND, allowing them both to further their sales, investments, and offerings.
There have been rumors of a merger for some time now, with the companies in talks, but nothing had been finalized until now. While there were initially questions over who would lead the combined company, it was decided that Sonus CEO Ray Dolan will head the combined company, while GENBAND CEO David Walsh will head up the Kandy (GENBAND’s cloud communications-platform-as-a-service) business.
As a result of the transaction, GENBAND’s network modernization, unified communications, and mobility and embedded communications solutions will be able to leverage Sonus’s software-based position in cloud-based SIP, real-time communication virtualization, and 4G/voice-over LTE solutions and security initiatives. This is intended to position them both better to enable their enterprise customers and communication service providers to begin network transformations to IP and cloud-based networks.
"This is a very natural market combination. We should expect more like this," said Marty Parker, Principal Consultant, UniComm Consulting and Biz Com Strategies Expert. "For the past 5 years, we have highlighted the transformative role that directory-enabled gateways are playing in enterprise communication architecture, displacing many of the functions of the PBX with a far more economical solution with a better architecture at the edge of the enterprise network. Combined with Genband and the powerful Kandy communication customization platform, enterprises can re-invent real-time and messaging-based communications on their premises or in the cloud. The combined company can base their success on their large customer base spanning both on-premises enterprises and cloud-based CPaaS service providers."
GENBAND and Sonus shareholders will be granted 50% of the combined company, which has an estimated enterprise value of around $745 million, based on the closing price of Sonus’s common stock in May. The deal has been approved, with the boards of both companies in agreement, and is expected to close in the second half of 2017.