Enghouse Networks Scoops Up Dialogic

Dialogic’s software business expands Enghouse’s already sprawling product portfolio, beefing up its position in the enterprise video and unified communications market.

Alan Breznick, Cable/Video Practice Leader, Light Reading

January 6, 2020

1 Min Read
Enghouse Networks Scoops Up Dialogic

Continuing its recent buying spree, Enghouse Systems announced today that it has acquired Dialogic Group for approximately $52 million, subject to certain adjustments.

Based in Parsippany, NJ, Dialogic specializes in crafting media processing software, offering a Session Border Controller and several software-based network solutions to communications service providers. Of particular note, Dialogic offers a solution that supports real-time video conferencing and collaboration applications across all types of mobile devices.

Enghouse, based in Markham, Ontario, said it scooped up Dialogic to bolster its "position in the enterprise video and unified communications market segment by adding rich multi-media processing applications and capabilities." Enghouse especially seems to covet the SBC platform that supports videoconferencing.

As in at least some of its earlier deals, Enghouse appears to be buying Dialogic on the cheap. Dialogic projects that its revenue over the next 12 months will be between $58 million and $63 million, or less than the company's sales price.

Why this matters
The Dialogic deal indicates that Enghouse still sees M&A activity as its best way to grow, as long as the price is right. The transaction also shows that Enghouse views enterprise video and unified communications as a highly promising area as it continues to beef up its product portfolio, less than a year after it acquired Espial.

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— Alan Breznick, Cable/Video Practice Leader, Light Reading

About the Author(s)

Alan Breznick

Cable/Video Practice Leader, Light Reading

Alan Breznick is a business editor and research analyst who has tracked the cable, broadband and video markets like an over-bred bloodhound for more than 20 years.

As a senior analyst at Light Reading's research arm, Heavy Reading, for six years, Alan authored numerous reports, columns, white papers and case studies, moderated dozens of webinars, and organized and hosted more than 15 -- count 'em --regional conferences on cable, broadband and IPTV technology topics. And all this while maintaining a summer job as an ostrich wrangler.

Before that, he was the founding editor of Light Reading Cable, transforming a monthly newsletter into a daily website. Prior to joining Light Reading, Alan was a broadband analyst for Kinetic Strategies and a contributing analyst for One Touch Intelligence.

He is based in the Toronto area, though is New York born and bred. Just ask, and he will take you on a power-walking tour of Manhattan, pointing out the tourist hotspots and the places that make up his personal timeline: The bench where he smoked his first pipe; the alley where he won his first fist fight. That kind of thing.

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