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

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