& cplSiteName &

Juniper to Acquire Kagoor

Light Reading
News Analysis
Light Reading

Thumbing its nose at all the acquisition rumors of the past several months, Juniper Networks Inc. (Nasdaq: JNPR) today agreed to buy Kagoor Networks, a vendor of session border controllers, for $67.5 million in cash.

The deal indicates the importance of session controllers in service providers' plans. It also could signal a buying frenzy in the session border controller space, which has long been ripe for some acquisitions.

Juniper expects to close the acquisition in the second quarter of 2005.

During the past year, Juniper has been rumored to be on the hunt for an Ethernet company, a wireless company, a Layers 4-7 player -- almost everything but a session border controller vendor. "The rumor mill does run rampant, but we can't comment on its accuracy," says Christine Heckart, Juniper vice president of marketing (see Juniper's Slow Shopping Trip ).

But session border controllers fit into Juniper's Infranet Initiative, which involves bringing better security and reliability into applications such as VOIP.

"What session border controllers do is help you deliver better security, better quality, and better interoperability across IP networks, specifically for voice calls and other real-time media applications," Heckart says.

Juniper thought Kagoor had the best technology available, but it was also a good fit in terms of relationships. Kagoor has about 100 customers and "pretty near 100 percent overlap" with Juniper's roster. Kagoor also works with the same resellers as Juniper, namely Lucent Technologies Inc. (NYSE: LU), NEC Corp. (Nasdaq: NIPNY; Tokyo: 6701), and Siemens AG (NYSE: SI; Frankfurt: SIE). (See Kagoor Gets Hot With Lucent.)

The deal "is good for Juniper for the portfolio fit and because it strengthens their links to two major incumbent voice vendors, Siemens and Lucent," says Graham Beniston, analyst with Heavy Reading, Light Reading's paid research arm.

But as glitzy as its sector is, Kagoor hasn't exactly become a powerhouse. Its revenues were less than $5 million last year, according to Juniper's press release, and the company isn't profitable yet.

A couple of Kagoor's competitors that didn't want to go on record with their comments characterized the price Juniper paid as being on the upper end of what the company was worth, given its revenues.

Kagoor officials did not return calls requesting comment.

Analysts say it's no surprise that Juniper would want a session border controller, because the devices are becoming critical to IP deployments. "The Internet is not the driver any more," says Tom Nolle, consultant with CIMI Corp. "Most of the IP deployments are going to be built around some kind of service mission, and voice is going to be a big part of that." Nolle also sees a need for session border controllers, as service providers try to mold IP to their needs, with something less "permissive" than the Internet. He cited one large European carrier that has vowed not to use the plain Internet peering model to connect to any other providers. "They're going to have a policy gateway on any interconnection they have," Nolle says.

The Kagoor buy could trigger a long-expected avalanche of session border controller acquisitions. After all, it's a hot sector populated with plenty of startups. "Carriers of all shapes and sizes see a need for session border control, which means the prospects for SBC specialist vendors are generally bright," Beniston wrote in a recent Heavy Reading report, "VOIP Session Border Controllers." "We have expected, as many others have, that 2005 will be the year that we see SBC companies getting acquired," says Joel Fisher, vice president of marketing and business development for Jasomi Networks. "Jasomi has seen interest from potential acquirers on an ongoing basis for over a year."

Of course, an IPO is another possibility for session border controllers, given the hype surrounding VOIP. Earlier this month, Kagoor VP of marketing Jim Greenway noted his company would be "looking into it." (See Session Controllers Stir IPO Interest.)

— Craig Matsumoto, Senior Editor, and Mark Sullivan, Reporter, Light Reading

For more on this topic, check out:

For further education, visit the archives of related Light Reading Webinars:

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Beer
12/5/2012 | 3:21:07 AM
re: Juniper to Acquire Kagoor
I'm interested in what other companies are likely to be acquired in 2005. The session border controller space as noted in the LR article is prime for further consolidation with Jasomi, Acme and Netrake being my picks for potential acquisitions in 2005.

There really aren't any pure play media gateways or softswitches anymore but the services layer (application and media servers) driven by the excitement around IMS are other segments of the VOIP ecosystem which I think are ripe for some consolidation. Anyone have any views/guesses on who might go next in any of these spaces and who are the likely suitors?
User Rank: Light Beer
12/5/2012 | 3:21:02 AM
re: Juniper to Acquire Kagoor
Gotta like seeing them get 13x sales!
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
Wednesday, October 26, 1:00PM EDT
Security: Tackling DDoS
Gary Sockrider, Principal Security Technologist, Arbor Networks
Friday, October 28, 1:00PM EDT
Security: The Plusses and Minuses of Open Source Software
Nick Feamster, Acting Director, Center for Information Technology Policy, Princeton University
Wednesday, November 16, 1:00PM EST
SDN 101
John Isch, Practice Director, Network & Voice, Orange Business Services
Friday, November 18, 1:00PM EST
SDN & Open Source
Christopher W. Rice, Senior Vice President of AT&T Labs, Domain 2.0 Architecture and Design
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Next-Generation Technology Beyond DOCSIS 3.1

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Hybrid Video Solutions to Change TV, Change Future

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei Future-Oriented Giga Coax Network

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei at SCTE 2016

10|20|16   |     |   (0) comments

Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
LRTV Custom TV
Assuring Network Quality in a Rapidly Changing Environment

10|20|16   |     |   (0) comments

As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
Telecom Innovators Video Showcase
A10 Networks on Service Providers' Industry Needs

10|20|16   |     |   (0) comments

Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
LRTV Custom TV
New NFV Use Cases for Cable TV

10|19|16   |     |   (0) comments

A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
Women in Comms Introduction Videos
Meet the Future Workforce: New Faces, Expectations & Motivations

10|19|16   |   5:33   |   (1) comment

Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
LRTV Custom TV
ZTE Global Services User Congress 2016 Highlights

10|19|16   |     |   (0) comments

ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
LRTV Custom TV
Cliff Grossner on Cloud & Network Synergy From Carrier Service

10|18|16   |     |   (0) comments

Local carriers offer the collaborated cloud and network service that benefits from their understanding of the regulations operating in different vertical markets.
In this interview, Cliff Grossner from IHS Technology talks about how this advanced service can support business agility and flexibility.
LRTV Custom TV
VeEX: Live from SCTE Cable-Tec Expo 2016

10|17|16   |     |   (0) comments

Cyrille Morelle, VeEX's President and CEO, talks with Light Reading's Alan Breznick live from the SCTE Cable-Tec Expo 2016. They discuss DOCSIS 3.1 technology, deployments and early lessons learned. New products on display include the CX350s-D3.1, CX380s-D3.1, CX310, AT2500-3G, FX150 OTDR and MTT WiFI Air Expert.
LRTV Custom TV
Smith Micro's Carrier-Grade WiFi Component

10|17|16   |     |   (0) comments

Join Carol Wilson of Light Reading as she interviews the CTO of Smith Micro, Dave Sperling.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Attacks Have Major Internet Sites on the Ropes
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/21/2016
Trump: Dump AT&T/TW & Comcast/NBC
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/24/2016
Layer3 TV Comes to Town, Hints at Future
Mari Silbey, Senior Editor, Cable/Video, 10/21/2016
Verizon Wants More Data on Yahoo Breach
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/20/2016
WiCipedia: Grace Hopper Promotes Diversity, Girl Scouts Code & How to Thrive
Eryn Leavens, Special Features & Copy Editor, 10/21/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.