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As reported by Light Reading in February, Sonus is to buy GSM softswitch specialist for $13M

March 27, 2007

1 Min Read
Sonus Buys Zynetix for $13M

More than a month after Light Reading first announced the deal, softswitch specialist Sonus Networks Inc. (Nasdaq: SONS) today announced it is to acquire mobile specialist Zynetix . (See Sonus May Eye Niche Acquisition.)

As we reported from the 3GSM event in Barcelona, this is a niche acquisition. Sonus is paying just $13 million in cash and stock for the British firm. But the news didn't seem to sit well with Sonus investors, as the vendor's share price dipped $0.35, more than 4 percent, to $8.23 following the official announcement. (See Sonus to Buy Zynetix .)

The driver behind the acquisition is Sonus's desire to broaden its mobile-specific capabilities. Zynetix has developed an IP-based GSM system-in-a-box that's designed to provide mobile services in a local or remote area, such as on a campus or cruise ship.

Sonus has a new focus, announced at 3GSM, on providing a complete set of capabilities to service providers that have low-power, or local area, GSM spectrum licenses, which enable companies to set up mini cell sites and offer GSM services in buildings and other localized areas, so Zynetix's technology fits neatly into that strategy. (See Sonus Unveils GSM Strategy.)

Zynetix, founded in 2003, has more than 30 customers, including mobile operators and government agencies. Details about the company's revenues, profitability, or financial backing have not been released. The acquisition is due to close in early April.

— Ray Le Maistre, International News Editor, Light Reading

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