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"BASKING RIDGE, N.J. - (AP) -- Telephone and computer software company Avaya Inc. is buying Israeli video conferencing company Radvision Ltd. for about $230 million in cash.
Under terms of the deal announced Thursday, Radvision stockholders will receive $11.85 per share, which is a 6 percent premium to the stock's closing price of $11.20 on Wednesday.
The companies said the deal was worth $230 million when stock options are exercised and added to the company's current 18.4 million shares outstanding.
In midday trading Thursday in New York, Radvision shares gained 50 cents, or 4.4 percent, to $11.70.
Avaya is privately held and is based in Basking Ridge, N.J. Radvision is based in Tel Aviv, Israel,
Radvision would become an Avaya subsidiary. Avaya said that Radvision's video infrastructure will be integrated with its Avaya Aura Unified Communications platform.
"With this acquisition we will seek to extend videoconferencing to any device, anytime, anywhere, making it as easy as a phone call," Avaya President and CEO Kevin Kennedy said in a statement.
The deal, which has been approved by both companies' boards, is expected to close within about 90 days. The majority of Radvision stockholders must still approve the transaction. There is no financing condition.
Once the acquisition closes, Radvision shares will no longer trade on the Nasdaq or Tel Aviv exchanges."
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