Dialogic Deals More Cards

Jim Machi : Industry Insight
Jim Machi

Dialogic Deals More Cards

11971-ProjectVictory_BlogHdr.jpgWell, it's a very exciting day for all of us in the Dialogic community! Some of you may have noticed a press release we issued and/or some press activity regarding Dialogic and Veraz Networks announcing a definitive agreement to merge. The deal is expected to close sometime in the 2nd half of 2010, subject to regulatory approvals, shareholder approvals, and customer closing conditions.

Anyone who knows Dialogic knows we have been a very active participant in M&A since Dialogic Corporation (then named Eicon Networks Corporation) bought the "Dialogic assets" from Intel in 2006. We followed this up by the purchase of EAS Group (Cantata and Excel Switching) in 2007, the OpenMediaLabs business in early 2008 and the NMS Communications Platforms Business in December 2008. Nope, you didn't miss anything in 2009!

This deal continues in the same vein of strengthening the service provider portfolio. The combined company would have an unparalleled product portfolio addressing a span of control of a "bit through the network" from inception to delivery of that bit - enablement of value added services, through to gateways, and softswitches, all with session border control and bandwidth optimization throughout. This ability to service the media (whether video, voice or data) end to end is very unique in the industry and we are excited about the product and service opportunities going forward. 

We see the the future clearly, and we are taking steps to address it so that we can continue to serve our customers. Nick Jensen, the Dialogic CEO said it best in the press release, "We will be creating a company with innovative products that will enable our customers to unleash the profit of video, voice and data for 3G/4G networks." 

And while we are strengthening our service provider portfolio, it does not mean we are de-emphasizing the enterprise market segment. That is still a strong business that we are investing in and that investment will continue. On a pro-forma basis, our enterprise business would still have been about 40% of the revenue of the combined company in 2009. The enterprise initiatives, such as Project DiaStar, remain important to us.

While I will have more to say in this blog space on the deal once it closes, in the meantime, please come and visit us at the various marketing events we have planned. You can find them on the events part of our website. There have been no changes to any planned activities and we'll be very happy to talk to you. 

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