PETAH TIKVA, Israel-ECI Telecom Ltd. and Tadiran Telecommunications Ltd. signed an agreement in principle to merge in a stock-for-stock transaction, pending a definitive agreement the companies expect to execute by the end of October, said the companies.
The agreement stipulates that Tadiran shareholders will receive one share of ECI for each 1.79 shares of Tadiran, reflecting a premium of 17.5 percent based on a recent 60-day average share price of both companies.
ECI provides integrated network solutions and manufactures digital data transmission systems.
Tadiran Ltd., parent company of Tadiran Telecommunications, also signed the agreement in principle.
