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October 04, 2006

With the Acquisition of Intel's Media and Signaling Business Now Complete, Eicon Networks Will Become Dialogic Corp.

By Patrick Barnard, TMCnet Assignment Editor

Mitel
 

They’ve crossed every “t” and dotted every “i” …

Eicon Networks’ (News - Alert) acquisition of Intel’s (News - Alert) media and signaling business is reportedly a done deal.
According to published reports, the deal went through today – and Eicon will now officially change its name to Dialogic (News - Alert) Corporation. As per the deal, the company will end up inheriting all of the product lines of the former Dialogic, which Intel acquired in 1999 (in this sense, the deal has led to the resurrection of the old Dialogic, although the new company will be quite a bit different from what it was seven years ago). In addition, the new Dialogic will inherit Intel’s Host Media Processing (HMP) software and HMP-enabled blades.

Also included in the sale is Intel’s complete line of SS7, PBX (News - Alert) integration and gateway solutions. By combining these products with Eicon’s Diva Server line, Eicon will be able to provide enhanced enterprise and service provider offerings to its customers as well as Intel’s.

Dialogic - which has strong financial backing with leading global investment groups including Investcorp Technology Ventures and Tennenbaum Capital Partners - is now poised to become a major player in the media processing, signaling and converged communications market segment. In the meantime, the deal will allow Intel to focus its on its core communications and embedded businesses - including Intel Architecture and network processors, modular communications platforms and optical modules.

“We have chosen the name Dialogic because it is one of the best known brands in the telecommunications industry with enormous traction throughout the world,” said Nick Jensen, the new president and CEO for Dialogic, in a press release. “The company will focus on service provider and enterprise market segments with a very strong line-up of products now unified under the Dialogic name.”

“We are very excited by the huge opportunity the new Dialogic offers,” said Jim Machi, Dialogic’s vice president, product marketing. “We want to continue to service our combined customer base and new customers, meeting the traditional market needs and those of the emerging wireless and IP market. We have many new developments planned in HMP, Video, SIP, multimedia gateways, and signalling servers and gateways which will enable us to make waves in the industry.”

Machi said Dialogic hopes to become “the number one open systems platform provider for the converged communications market segment.”

Now the integration process begins. Both companies said they expect this to go smoothly – however, what the deal means for the 600 employees who work in Intel’s media and signaling business remains somewhat unclear. The division is involved in a variety of functions, including engineering, product testing and validation, operations and marketing. A recent statement from Intel indicates that a “significant number” of these employees will likely become employees of the new Dialogic.

The sale isn’t expected to have any impact on Intel’s communications infrastructure products for telecommunications equipment manufacturers, including its industry-leading Advanced Telecom Computing Architecture (ATCA) blades and carrier-grade rack mount servers, as well as its CompactPCI (News - Alert) compute blades and chassis.

Dialogic/Eicon will continue to work closely with Intel as a member of the Intel Communication Alliance.

For analysis on the deal from TMCnet, check out Rich Tehrani’s article.

For more information about the companies, visit www.intel.com or www.dialogic.com.

What’s the number one VoIP conference in terms of attendance? What’s the leading VoIP expo for exhibitors in terms of lead generation? And which VoIP industry event will feature special attractions for service providers, resellers, and the enterprise and SMB market as well as an overview on the Future of IP Telephony? Answer: INTERNET TELEPHONY Conference & Expo, WEST, which runs October 10-13, 2006. See you in San Diego!

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Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.


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