- AVCT and Ribbon Communications Inc. complete the tactical acquisition of Kandy Communications by AVCT.
- AVCtechnologies is now known as a premier white label provider of CPaaS, UCaaS, and CCaaS.
- The transaction was completed under the terms of an amended and reaffirmed acquisition agreement.
Completed the acquisition
American Virtual Cloud Technologies, Inc. (AVCT) and Ribbon Communications Inc. publicized that they have successfully completed the previously declared acquisition of Kandy Communications (Kandy) by AVCT.
Kandy complements AVCT’s April 2020 acquisition of Stratos Management System, Inc. (dba Computex Technology Solutions) by offering a full suite of Contact Center as a Service (CCaaS), Unified Communication as a Service (UCaaS), and Communications Platform as a Service (CPaaS).
These platforms (CCaaS, UCaaS, CPaaS) serve the rapidly developing cloud communications industry.
Presently, consumers demand a highly scalable, reliable, and secure communications platform along with an enhanced consumer experience.
AVCtechnologies offers end-to-end (E2E) services such as cloud communications, IT solutions, and managed services, provided by certified specialists to provide exceptional white-glove consumer experience to system integrators, business customers, independent software vendors, and service providers.
Thus, AVCtechnologies is now known as a premier white label provider of CPaaS, UCaaS, and CCaaS.
Xavier Williams, Chief Executive Officer and Board Director at AVCT, commented: “We are very pleased to welcome Kandy to the AVCtechnologies family.”
He further added, “Kandy will be our linchpin, enabling us to provide carrier-grade, global cloud communications that address the needs of medium and large enterprises. As the velocity of public, hybrid, and private cloud communications continues, we are in a fortunate position to be able to focus on execution while competitors in our space need to concentrate on platform capabilities, global expansion and improved customer experience. Kandy’s world class, globally-deployed, carrier grade, white-labeled proprietary communications platform gives AVCtechnologies the ability to solve customer communication needs. Kandy’s platform, significant growth trajectory, and global marquee customer and partner base, including AT and amp;T, City of Los Angeles, IBM, and Etisalat (the largest telecom provider in the UAE), accelerates our go to market plans and enables us to expand our award-winning portfolio.”
Bruce McClelland, President, CEO and amp; Director of Ribbon Communications, commented: “We are impressed with the depth of talent and vision of the AVCtechnologies’ management team and believe that with the addition of the innovative Kandy team, the company will continue to provide excellent service to channel partners and customers. We are confident that AVCT is poised to unlock additional value with Kandy, and we are excited to be a shareholder of the Company.”
Transaction and stock price data
The transaction was completed under the terms of an amended and reaffirmed acquisition agreement.
At the closing, AVCT distributed to Ribbon units of securities comprising convertible debentures in a total principal amount of about USD 45 million and warrants to buy about 4.5 million shares of AVCT’s common stock for an exercise price of about USD 0.01 per share.
The buying cost depends on the profit of the Kandy business as of the closing date.
During the closing of the transaction, an affiliate of Navigation Capital Partners, Inc. entered into a subscription agreement with AVCT. It purchased USD 10 million in the same units of securities issued to Ribbon. It is also committed to purchase up to an additional approximately USD 25 million of such units to offer the Company working capital to fund its projected growth.