ECtel shareholders approve a merger pursuant to the merger agreement dated October 22, 2009, in a cash transaction valued at $21 million

December 11, 2009

1 Min Read

ROSH HA'AYIN, Israel -- ECtel Ltd. (NASDAQ: ECTX - News; "ECtel" or the "Company"), a leading provider of Integrated Revenue Management(TM) (IRM®) solutions for communications service providers, announced today that at the extraordinary general meeting of shareholders held today, the Company's shareholders voted to approve the sale of the Company to cVidya Networks Inc. ("cVidya"), a global leader in telecom revenue management, risk management, and dealer management solutions, by way of a merger pursuant to the merger agreement dated October 22, 2009, in a cash transaction valued at $21 million (less transaction expenses of approximately $430,000).

Approximately 70% of the outstanding shares of ECtel on the record date were cast in favor of the transaction. The votes cast in favor of the transaction constituted 99.7% of the aggregate shares voted.Upon the closing of the merger, which is expected to occur in early January 2010, each ordinary share of ECtel issued and outstanding immediately prior to the effective time of the merger will automatically be converted into the right to receive payment in cash which, excluding interest and less any applicable withholding tax, is currently expected to be approximately US$1.26. Following completion of the merger, ECtel will become a privately held company, indirectly wholly owned by cVidya.

The consummation of the merger is subject to a 30-day statutory waiting period following shareholder approval and the satisfaction of certain other conditions to closing set forth in the merger agreement.

ECtel Ltd. (Nasdaq: ECTX)

cVidya Networks Inc.

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