Update – Oct 4th 12:18 PM EST. Below I reference the market cap of Dialogic to be around $60M as this was the number publicly available at the time. The company informs me the value is closer to $160M with the Dialogic shares combines. I apologize to my readers for the error.

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Dialogic’s merger with Veraz has officially closed and and the new company will be called Dialogic and have the symbol the company used in the nineties before it was acquired by Intel – DLGC. The company also quietly cut some heads recently and put out a press release mentioning a 5 for 1 reverse stock split leaving about 31 million shares available.

The new headquarters will be in San Jose and consists of many once-standalone companies such as Cantata, Excel, Brooktrout, Rhetorex and NMS. Moreover they power carriers supporting over 2 billion mobile subscribers worldwide and supply the lion’s share of fax enabling technology.

Wall Street for its part is in show-me-the-money mode valuing the company with a market capitalization of around $60M $160M on Pro Forma revenue of over $250M and 3,000 global customers. The value seems very low considering one would imagine the patents alone would would be worth in the many tens of millions of dollars.

The company has pegged its future on providing more video and SBC products and without a doubt they are leader in the former space but to date it has been tough to monetize. Still, video transcoding and transrating are crucial areas for carriers looking to better monetize their networks and Dialogic is a major player in this space.

The SBC market is a different story as Acme Packet has it sewn up for now but ferocious competition is coming from every direction so stay tuned.

Nick Jensen the Chairman and CEO at the old Dialogic will continue with this title at the combined company and he told me recently the market is always right in terms of valuation but he hopes it hasn’t factored in the value of the Dialogic acquisition. I am sure there are many people including employees and current investors who hope he is right.

Time will tell of course and I am sure the topic will be part of the buzz at ITEXPO Monday-Wednesday of this week at the Los Angeles Convention Center.