Avaya plc (NYSE: AV) is set to acquire video conferencing solutions developer Radvision Ltd. (Nasdaq: RVSN; TASE: RVSN) for $230-240 million. "Globes" reported that the two companies were in advanced talks in December and the deal is expected to be closed in the next few days.
Over the past few days, Radvision's share has risen sharply, probably due to rumors that the company is about to be sold. Last night the share price on Nasdaq rose 11% to $9.97, giving a market cap of $193.8 million. Trading in the company's shares on the TASE was suspended this morning but was due to resume at 11 am.
Radvision has been up for sale from more than two years after Cisco Systems Inc. (Nasdaq: CSCO), previously its largest customer, acquired the Israeli company's Norwegian rival Tandberg for $3.3 billion in late 2009.
Over the past few years, Radvision, controlled by Zohar Zisapel who owns 26.3% of the company and his brother Yehuda Zisapel who owns 6.3%, have tried to manage without Cisco, but have not really succeeded.
In the fourth quarter of 2011, Radvision reported revenue of $21.8 million, down from 26.6 million in the corresponding quarter of 2010. The bottom line was that the company lost $4.5 million ($0.24 per share) in the fourth quarter of 2011 compared with a profit of $1.4 million ($0.07 per share) in the corresponding quarter.
Radvision declined to comment on the report.
Published by Globes, Israel business news - www.globes-online.com - on March 14, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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