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B. Riley to Acquire Israel´s MagicJack VocalTec in USD 143m Deal
Monday 13 November 2017

13 November 2017 - US-based financial services company B. Riley Financial, Inc. (NASDAQ: RILY) and Israeli Voice over IP cloud-based communications company magicJack VocalTec, Ltd. (NASDAQ: CALL) have signed a definitive merger agreement, pursuant to which B. Riley will acquire magicJack for USD 8.71 per share, the companies said.

This represents a 23% premium over magicJack's 90-day average stock price and approximately USD 143m in aggregate merger consideration.

It is anticipated that magicJack will be held by B. Riley's subsidiary B. Riley Principal Investments, LLC, the entity that currently owns United Online, Inc., a complementary telecommunications company.

B. Riley expects to finance the transaction using cash on hand and debt financing.

Closing of the transaction is subject to the receipt of certain regulatory approvals, the approval of the magicJack shareholders and the satisfaction of other closing conditions. The transaction is expected to close in the first half of 2018.

B. Riley FBR, Inc. served as financial advisor to B. Riley. Sullivan and Cromwell LLP, Wilkinson Barker Knauer LLP and Gross Kleinhendler, Hodak, Halevy, Greenberg and Co. served as legal counsel to B. Riley. Bryan Cave LLP, Wiley Rein LLP and Yigal Arnon and Co. served as legal counsel and BofA Merrill Lynch acted as financial advisor for magicJack.
Date Published: 13/11/2017
Target: magicJack VocalTec
Country: Israel
Deal Size: 143m (USD)
Sector: Telecommunications
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Buyer: B. Riley Financial
Buyer Advisor: B. Riley FBR , Sullivan and Cromwell , Wilkinson Barker Knauer , Gross Kleinhendler, Hodak, Halevy, Greenberg and Co