ECI Telecom has agreed to be acquired by a group of investors for $1.2 billion, the company announced today.

Affiliates of the Swarth Group, an investment entity controlled by Israeli businessman Shaul Shani, and a group of investment funds led by Ashmore Investment Management, agreed to acquire the Israel-based equipment vendor for $10 per share in cash.

In response to media reports, ECI acknowledged last month that it was discussing a possible acquisition with Swarth.

The deal allows ECI to entertain competing bids until July 31, 2007, and the company intends to do so, it said in a statement released today. But ECI would be required to pay a break-up fee of an undisclosed amount were it to accept a competing offer.

The company reported $656 million in revenue for 2006 and $22 million (or $0.18 per share) in net income.

ECI is only the latest telecom concern to be acquired by private equity investors of late. Alltel was acquired by TPG Capital and Goldman Sachs Capital Partners for $27.5 billion in May. More recently, Avaya was bought by Silver Lake for $8.2 billion, reportedly outbidding Nortel Networks.