VocalTec and YMAX/magicJack Announce Merger

VocalTec Communications Ltd. and YMAX Corp., the creator of magicJack, have successfully merged. The new entity will be called VocalTec and will be traded on the Nasdaq under the symbol CALL.

This is an interesting matchup. MagicJack has a well recognized brand with more than 6.5 VoIP million units sold since 2008. In fact, magicjack is the largest CLEC in the United States in terms of area codes available and certification in number of states.

For its part, VocalTec will add softswitch, application servers and a softphone to the mix. VocalTec bills itself as the “inventor” of VoIP and the softphone and says it has the patent portfolio to back up the claim.

The parties believe that the combined company has an enterprise value of $245 million and a per share value of at least $17.50. VocalTec projects 2010 revenues between $110-$125 million, and expects to show a profit this quarter with cash on hand and no debt.

Look for VocalTec to challenge the likes of Google Voice and market leader Skype in future offerings.

For more, see this release.

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