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ECtel Shareholders Approve All-Cash Merger Transaction With cVidya Networks

December 11, 2009

ROSH HA’AYIN, Israel, December 11 /PRNewswire-FirstCall/ — ECtel Ltd.
(NASDAQ: ECTX) (“ECtel” or the “Company”), a leading provider of Integrated
Revenue Management(TM) (IRM(R)) solutions for communications service
providers, announced today that at the extraordinary general meeting of
shareholders held today, the Company’s shareholders voted to approve the sale
of the Company to cVidya Networks Inc. (“cVidya”), a global leader in telecom
revenue management, risk management, and dealer management solutions, by way
of a merger pursuant to the merger agreement dated October 22, 2009, in a
cash transaction valued at $21 million (less transaction expenses of
approximately $430,000).

(Logo: http://www.newscom.com/cgi-bin/prnh/20010807/FLTU015LOGO )

Approximately 70% of the outstanding shares of ECtel on the record date
were cast in favor of the transaction. The votes cast in favor of the
transaction constituted 99.7% of the aggregate shares voted.

Upon the closing of the merger, which is expected to occur in early
January 2010, each ordinary share of ECtel issued and outstanding immediately
prior to the effective time of the merger will automatically be converted
into the right to receive payment in cash which, excluding interest and less
any applicable withholding tax, is currently expected to be approximately
US$1.26. Following completion of the merger, ECtel will become a privately
held company, indirectly wholly owned by cVidya.

The consummation of the merger is subject to a 30-day statutory waiting
period following shareholder approval and the satisfaction of certain other
conditions to closing set forth in the merger agreement.

About ECtel

ECtel (NASDAQ:ECTX) is a leading global provider of Integrated Revenue
Management(TM) (IRM(R)) solutions for communications service providers. A
pioneering market leader for nearly 20 years, ECtel offers carrier-grade
solutions that enable wireline, wireless, converged and next generation
operators to fully manage their revenue and cost processes. ECtel serves
prominent Tier One operators, and has more than 100 implementations in over
50 countries worldwide. Established in 1990, ECtel maintains offices and has
a presence in the Americas, Europe and Asia. For more information, visit
http://www.ectel.com.

About cVidya

cVidya Networks is a global leader in telecom Revenue Management, Risk
Management, and Dealer Management solutions. Based on highly-advanced revenue
assurance technologies, full compliance with industry standards, and market
proven methodologies, cVidya`s MoneyMap platform has already helped to reduce
costs and reclaim hundreds of millions of dollars in lost revenues for
leading fixed, mobile and triple-play communication service providers.
cVidya’s customers include British Telecom, Telefonica, Vodafone, Swisscom,
Telecom Italia, Cable & Wireless, and more. cVidya received the Best Revenue
Assurance and Management Project Award at the World BSS Awards 2008. For more
information, visit http://www.cvidya.com

Certain statements contained in this release contain forward-looking
information with respect to plans, projections or future performance and
products of the Company, the occurrence of which involves certain risks and
uncertainties. Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, we can give
no assurance that our expectations will be obtained or that any deviations
will not be material. Such statements involve risks and uncertainties that
may cause future results to differ from those anticipated. These risks
include, but are not limited to, the effects of general economic conditions,
the possible slow-down in expenditures by telecom operators, adverse effects
of market competition and the impact of competitive pricing and offerings,
the reoccurrence of sales to existing customers, the ability to recognize
revenue in future periods as anticipated, the unpredictability of the telecom
market, product and market acceptance risks, the ability to complete
development and market introduction of new products, fluctuations in
quarterly and annual results of operations, dependence on several large
customers, commercialization and technological difficulties, risks related to
our operations in Israel and risks associated with operating businesses in
the international market. These and other risks are discussed at greater
length in the Company’s annual report on Form 20-F and other filings with the
Securities and Exchange Commission. ECtel disclaims any obligation to update
these forward-looking statements and undertakes no obligation to publicly
release any revisions to these forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

    ECtel Contact:

    Michael Neumann
    Senior Vice President and CFO
    Tel: +972-3-9002115
    Email: mickeyne@ectel.com

    External IR Contacts:

    Ehud Helft\Kenny Green
    GK Investor Relations for ECtel
    Tel: +1-646-201-9246
    Email: info@gkir.com

SOURCE ECtel Ltd


Source: newswire



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