ECI Telecom Completes Sale of its Business Systems Division
PETAH TIKVA, Israel--(BUSINESS WIRE)--Nov. 08, 2001--ECI Telecom Ltd. (NASDAQ/NM symbol: ECIL - news) announced today that it has completed the sale of its Business Systems division to Rani Bregman Business Systems Ltd, owned by Rani Bregman (50%) and Africa Israel communications (50%).
The closing followed a 60-day period of due-diligence and approvals. With the finalization of the transaction, ECI Telecom receives $12.4 million.
As part of the contract, The Purchaser has assumed assets and liabilities in connection with ECI Telecom's Business Systems Division, including liabilities of up to US $ 27.5 million, in connection with the employees' retirement plan.
Business Systems designs and manufactures advanced IP-Enabled PBX systems for enterprises and organizations. The division currently employs more than 450 employees worldwide.
ECI Telecom Ltd. is a provider of integrated network solutions for digital communications and data transmission systems. The Company designs, develops, manufactures, markets and supports end-to-end digital telecommunications solutions for today's new services and converging networks. The Company's products create bandwidth, maximize revenues for network operators, expand capacity, improve performance and enable new revenue-producing services. In doing so, they enhance the capabilities of existing networks to support voice, data, video and multimedia services. ECI Telecom's equipment supports traffic in more than 500 service networks in over 145 countries.
This press release and additional information about the Company, are available on ECI Telecom's web site: http://www.ecitele.com.
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Certain statements contained in this release may contain forward-looking information with respect to plans, projections or future performance of the Company. By their nature, forward-looking statements involve certain risks and uncertainties including, but not limited to, the ability to complete transactions with investors, the ultimate success of the de-merger process, product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.