ECI

Acquisition by a group of private equity investors led by the Swarth Group

Carmel’s involvement in ECI began in 2002 when Carmel led a $50 million PIPE deal. Carmel’s investment in ECI was led by Shlomo Dovrat, who served as an active Chairman of ECI’s board of directors and worked closely with the Company throughout the entire investment period. Carmel’s investment in ECI was conducted in the midst of the telecom crisis. We identified several significant underlying strengths of ECI including a competitive technology advantage, an outstanding technological and managerial team, a strong reputation and a significant advantage in certain geographies.

ECI went through a successful turnaround under the new leadership, with Shlomo Dovrat as Chairman of the Board, and Doron Inbar as the company’s CEO. The turnaround was based on refocusing the company on two core activities, rigorous costs management, penetrating high-growth emerging markets such as India, Russia and China and product innovation. Within a short time, ECI grew revenues, became profitable, increased market share and generated impressive positive cash flow from operations.

Through its involvement in ECI, Carmel has developed an impressive worldwide ecosystem, that includes all leading global Telco and mobile players.
In September 2007, ECI Telecom (NASDAQ:ECIL), was acquired by a group of private equity investors, in a transaction valued at approximately $1.2 billion for $10.00 per share.

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