Nortel Buys Pingtel

Pingtel changes hands again as Nortel acquires the SIP-based unified communications software specialist for an undisclosed sum

August 13, 2008

2 Min Read
Nortel Buys Pingtel

Nortel Networks Ltd. has stepped up its efforts to be one of the major players in the so-called "unified communications" sector with the acquisition of software applications specialist Pingtel Corp. for an undisclosed sum.

Pingtel, which is already a Nortel OEM partner, is being acquired from Wireless LAN vendor Bluesocket Inc. , which only acquired Pingtel in July 2007. (See Bluesocket Buys PingTel.)

Pingtel is best known for its SIPxchange software, a SIP (Session Initiation Protocol)-based PBX product targeted at small and medium-sized business users, a market segment in which Nortel claims to have 15 million customers worldwide. Nortel says the acquisition will give it the "critical R&D capabilities" it needs to be a leading edge player in the increasingly important unified communications market. (See Giant Steps for Unified Communications and Securing the Walls of UC Platforms.)

Nortel says Pingtel's staff will join its Billerica, Mass., facilities, and that, initially, Pingtel's software will help bolster the capabilities of its Software Communication System 500 platform, which integrates services such as email, instant messaging and conferencing with business applications.

Enterprise communications is one of Nortel's main focus areas, alongside 4G wireless, carrier Ethernet/optical, and services. The vendor's Enterprise Solutions business unit generated revenues of $2.63 billion in 2007, 24 percent of the company's $10.95 billion total, and is expected to grow its sales by an average of 12 percent per year up to 2011, helped by the strategic relationship with Microsoft Corp. (Nasdaq: MSFT). (See Nortel Intros Enterprise Products, Nortel Unveils Enterprise Strategy, and Nortel Sees $1B From Microsoft Alliance.)

Nortel's move comes only days after its Korean joint venture, LG-Ericsson Co. Ltd. , announced it had acquired WDM-PON vendor Novera Optics Inc. . (See Nortel JV Buys WDM-PON Specialist.)

— Ray Le Maistre, International News Editor, Light Reading

For more on this topic, check out:

  • The VOIP Services Insider report:
    — Unified Communications: A Sense of Insecurity

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