Avaya Inc., the communications-equipment maker owned by private-equity firms Silver Lake and TPG Capital, agreed to acquire RadVision Ltd., an Israeli maker of video-conferencing systems, for about $230 million.
The cash transaction at $11.85 a share represents a premium of about 57 percent over RadVision’s average closing share price during the 90 trading days ended yesterday, Tel-Aviv based RadVision said in a statement today. RadVision shares jumped 12 percent to 44.05 shekels, or the equivalent of $11.67, at the 4:30 p.m. close of trading in Tel Aviv, the highest level since December 2007.
“Despite the global slowdown, Israeli companies continue to attract top dollar from international investors and companies,” said Zach Herzog, an equity sales trader at Psagot Investment House Ltd. in Tel Aviv. “It is certainly likely more Israeli companies will be sold in the years ahead.”
Israel’s largest companies may be forced to sell some of their subsidiaries after a government committee on economic concentration recommended in February that holding companies simplify their corporate structures to no more than three public layers within four years.
“The strategic merger will now combine two industry leaders with a shared passion and vision for creating high-performance unified communications solutions,” RadVision Chief Executive Officer Boaz Raviv said in the statement.
The stock has risen 42 percent this year, giving RadVision a market value of 812 million shekels, compared with a 2.2 percent advance for the benchmark TA-25 index.
Cisco Systems Inc., the world’s largest maker of equipment for computer networks, agreed to buy NDS Group Ltd. in a deal valued at about $5 billion to add software used in next-generation video services, it announced today.
NDS, which makes software for pay-television channels has operations in Israel and is co-owned by Rupert Murdoch’s News Corp. and London hedge fund Permira Advisers LLP.
Avgol Industries 1953 Ltd., an Israeli manufacturer of nonwoven fabrics, said this month that private-equity firm Blackstone Group LP was in preliminary talks about a possible acquisition. In January, Apple Inc. said it acquired Israeli flash-memory producer Anobit Technologies Ltd.
Israel, whose population of 7.8 million is similar in size to Switzerland’s, has about 60 companies traded on the Nasdaq, the most of any country outside the U.S. after China.
Microsoft Corp. opened a research and development center in Israel in April 2006, according to the Redmond, Washington-based software maker’s website. Intel Corp., which began operations in Israel in 1974 with five employees, has 6,600 workers in the country, according to the chip manufacturer’s website.
The RadVision transaction is subject to the approval of shareholders, the company said.