B. Riley Financial has reached an agreement to acquire magicJack VocalTec for $8.71 per share.

B. Riley Financial Inc., a diversified financial services company, and magicJack VocalTec, a Voice over IP (VOIP) cloud-based communications company, have signed a definitive merger agreement, pursuant to which B. Riley will acquire magicJack for $8.71 per share, representing a 23% premium over magicJack's 90-day average stock price and approximately $143m in aggregate merger consideration. It is anticipated that magicJack will be held by B. Riley's subsidiary B. Riley Principal Investments. B. Riley expects to finance the transaction using cash on hand and debt financing. "The synergistic potential, combined with magicJack's subscriber base and brand name, make this an attractive investment opportunity," Kenny Young, B. Riley Principal Investments CEO. The transaction is expected to close in the first half of 2018.