Former shareholders in each company will own about 50% of the combined operation. Sonus remains the legal entity and aims to change its legal name to Ribbon Communication by the end of the year.
Ray Dolan, Ribbon president and CEO, said: “Our new name offers a fresh start and embodies our ambition to build one of the largest, most innovative, dedicated and secure global real-time communications organisations on the market.”
In a statement, he added: “Going forward as Ribbon Communications, we are positioned as a global leader in real-time communications and security solutions, with increased size and market reach across products, customers and geographies.”
The combination “will enable us to deliver an expanded solutions portfolio and enhanced resources to support your needs around the world”, added Dolan, a former Qualcomm executive who was CEO of Sonus for seven years before the merger.
According to the announcement in May, the two companies’ combined 2016 revenue and EBITDA would have been approximately $680 million and $50 million, respectively, on a combined basis which excludes synergies and is prior to any impact from purchase accounting.
Today Ribbon said that the combined company is expected to realise cost synergies of $40 million-$50 million in 2018 “and to drive solid cash flow from operations in the first year after closing”.
Why Ribbon? Dolan said: “The new Ribbon Communications name reflects the unparalleled suite of real-time communications software solutions that the combined company brings to the market. Ribbon Communications is ready to deliver the flexibility, security and stability that today’s digital life requires, enabling better business outcomes.”
However, Sonus has not yet registered the new name with the Nasdaq market and its shares will continue to trade under the SONS ticker until the new name and new ticker become effective, “which is anticipated to be by the end of 2017”.