October 23, 2009 (FinancialWire) — ECtel Ltd. (NASDAQ: ECTX) said it has entered into a definitive merger agreement for the acquisition of the company by cVidya Networks Inc. in a cash transaction valued at $21 million. Both companies provide revenue management software to telecom providers.

Under the terms of the deal, ECtel shareholders will receive around $1.26 per share in cash upon the closing of the transaction, representing a premium of approximately 58% over ECtel’s average closing share price over the 90 trading days ended October 21.

There is no financing condition to the obligations of cVidya to consummate the transaction. The definitive agreement contains customary representations and warranties, covenants, closing conditions, termination provisions, exclusivity requirements and arrangements to handle superior proposals.

ECtel’s board has unanimously approved the agreement and recommend that ECtel’s shareholders vote in favor. The deal should close by the end of 2009. Upon the closing of the transaction, ECtel’s ordinary shares will be delisted from NASDAQ.

Israel-based ECtel provides integrated revenue management solutions for communications service providers.

cVidya Networks offers telecom revenue management, risk management, and dealer management solutions.

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