VocalTec (News - Alert) Communications Ltd., a global provider of carrier-class multimedia and voice-over-IP solutions, announced that the company has successfully merged with YMAX Corp., a phone company with the largest competitive local exchange carrier (CLEC) network in the U.S, and inventor of the magicJack.
Both the companies believe that the combined company has an enterprise value of $245 million and a per share value of at least $17.50 on a stock split adjusted basis. The previous holders of VocalTec will have 1,173,294 shares of common stock following the merger. VocalTec expects to have revenues ranging from $110 million to $125 million this year. With over $40 million cash/securities on hand and no debt, VocalTec expects to show a profit in the current quarter.
"I am excited about the potential to become the worldwide, leading provider of VOIP and softphone applications using SIP. I strongly believe that the synergies enabled by this business combination will allow us to achieve this target. I trust the leadership and of Dan Borislow to make this a reality," Ido Gur, a representative of VocalTec's Israeli operations said.
The combined companies will now have the use of over 30 patents. The company believes that its patents, technology, and inventions are prior art to other existing patents and may also expose patent invalidity. The combination of patents and softphone/softswitch technology were the primary drivers of the merger. The combined company is much stronger now.
YMAX’ magicJack allows its users to make an unlimited number of phone calls to any area in the US and in Canada. magicJack is very easy to install. Users have to just plug the USB device into a USB port, plug a phone on the other end, wait for the Softphone screen to load in a couple of minutes and they are ready to use. Other features of magicJack include; conference calling, call waiting, call forwarding, voice mail and caller ID.
YMAX also has its own chip development and application server/softswitch company. As a provider of trunking, peering and residential/enterprise VoIP application solutions, VocalTec has played a central role in the implementation and support of dozens of advanced telecom solutions, specializing in the smooth migration of voice networks from TDM to IP. Through this merger, VocalTec also adds softswitch, application servers and the softphone to the mix. The combined company is believed to have cost reductions through different synergies.
Jai C.S. is a contributing editor for TMCnet. To read more of Jai's articles, please visit his columnist page.
Edited by Erin Monda