Ribbon Communications, Inc. [NASDAQ: RBBN] has disclosed that its QualiTech division to be bought by Hermon Technologies. QualiTech is now part of Ribbon and is an independent unit of former ECI Telecom. As per the deal, Hermon Technologies and QualiTech will continue to offer testing and standardization services to Ribbon.
It is anticipated that the team of QualiTech will be moved to Hermon Laboratories. The deal is projected to execute dependent on certain conditions and also dependent on the permission of the Israeli Competition Commissioner. The deal is anticipated to finalize in the second quarter of 2021.
Shares of Ribbon Communications, Inc. [NASDAQ: RBBN] soared 5.69% during the trading session of Tuesday. In the past 52-weeks of trading, this firm’s share went from a low point around $1.95 to briefly over $11.11. Its shares surged 471.28% and 0.27% from its 52-week low and 52-week high, respectively.
Looking at its profitability, it as return on Investment, Equity, and Assets is -23.10%, -34.70%, and -14.50%, respectively. Its Gross Margin is 55.00%, Profit Margin is -24.40% and Operating Margin is -21.60%. Turning our focus on its liquidity, it has a current ratio of 1.30 and a quick ratio is also 1.10. Ribbon’s market cap has remained high, hitting $1.53 billion at the time of writing.
CEO of Ribbon commented that the sale of QualiTech business in parallel with its strategy of expanding its focus on its core IP Optical Networks and Cloud and Edge businesses. After the deal, Ribbon will be able to maintain the testing and standardization services. After the deal, they will be moving to the Hermon Laboratories team. This agreement will also enable Hermon Laboratories to expand its services.