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October 23, 2006
Veraz Networks Files for an IPO
By Johanne Torres, TMCnet Contributing Editor
VoIP provider Veraz Networks announced Monday that it has filed a registration statement for an Initial Public Offering (IPO).
The company joined forces with Credit Suisse Securities (USA) and Lehman Brothers, which will act as book-running managers of the proposed offering. Jefferies & Company and Raymond James & Associates will also act as underwriters for the proposal. The companies are yet to determine the price range of the number of the shares.
Veraz has had a pretty busy year thus far. The company has announced significant deals which would back up its decision to go public. Just this July, the company joined forces with Verso Technologies ( News - Alert) to provide Cable & Wireless Jamaica with an advanced NGN switching infrastructure and prepaid wireline system.
The agreement called for Veraz to provide Cable & Wireless Jamaica with its ControlSwitch Softswitch and service delivery platform along with its I-Gate 4000 PRO media gateway and incorporate Verso's IP-based I-Master Application Server and Revenue Assurance Platform to deliver prepaid features and services to subscribers. The project was deployed and implemented within four weeks from the date of order.
Veraz's ControlSwitch would enable Cable & Wireless to preserve its legacy infrastructure. Verso's I-Master system, via the convergence of calling card, prepaid wireline and Internet services, would allow Cable & Wireless to target prepaid wireline, calling card and prepaid Internet services. Cable & Wireless has plans to migrate all existing calling card traffic to the new platform.
Veraz planned to initially deploy 20,000 VoIP ports and to expand Cosmoline's VoIP network which currently services over 50 million usage minutes monthly. Cosmoline's network carries traffic between the major cities in Greece and also internationally. With Veraz's centrally managed ControlSwitch in place, Cosmoline can integrate the ControlSwitch's smaller footprint and centralized location to reduce operating costs.
Veraz's global reach will definitely be a big asset when the company goes public. Just this May, the company scored a contract from Gateway Communications to deploy the Veraz's VoIP system to upgrade and expand its international long distance voice services network. The move allowed Gateway ( News - Alert) to replace its Nortel ( News - Alert) TDM switch with the Veraz system.
With the new network in place, Gateway is now able to use VoIP to deliver new IP-based services over a converged IP network.
The deployment enabled Gateway to also link its mobile networks across over 30 countries throughout Africa and also connect their European gateway network. Gateway can now expand its global VoIP footprint in new markets by carrying traffic from mobile networks, locally converting it to VoIP, transmitting it over satellite between mobile networks and its Belgium gateway location for global connectivity.
With these deals under its belt, Veraz seems to be prepared to go public. Let's just hope the move proves to be successful, unlike the damage brought upon industry leader Vonage ( News - Alert) when it filed for an IPO earlier this year.
Vonage's much-anticipated IPO disappointed most investors as its shares almost lost half their value a day after its debut on May 30 at $17 a share. The sinking shares rushed the company into a money recovery mission in order to repay the "promised investment" made by individuals who signed up to buy shares through a special program and later refused to buy the stock. The company announced that it will allocate more than $17 million to pay and reimburse IPO underwriters.
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Johanne Torres is contributing editor for TMCnet and INTERNET TELEPHONY magazine. To see more articles by Johanne Torres, please visit her columnist page.(source: http://news.tmcnet.com/news/2006/10/23/2005382.htm)
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