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Dialogic to Acquire NMS Communications Platforms Business

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September 12, 2008

Dialogic to Acquire NMS Communications Platforms Business

By Richard Grigonis, Executive Editor, IP Communications Group

The telecom/high-tech world has been replete with mergers and acquisitions for many years now. Yours truly can recall when Kontron Communications acquired ICS Advent (the former Industrial Computer Source) and then Teknor Applicom. And I can recall when Cisco went on its seemingly never-ending acquisition binge of the 1990s.

And now, Dialogic Corporation, a leading provider of open systems platforms to both the Enterprise and Service Provider markets, which had absorbed Cantana (the former Brooktrout (News - Alert) and Excel), has now announced it has “entered into a definitive agreement” with NMS Communications Corporation, through which Dialogic plans to acquire the NMS Communications Platforms business, which provides enabling technology and tools for value-added services in mobile telecommunications.
NMS, formerly known as Natural Microsystems, was always the Avis to Dialogic’s Hertz. And yet, NMS always had brilliant ideas in the works, such as MVIP, the Multi-Vendor Integration Protocol, a PCM digital bus standard for integrating various board vendors in the computer telephony marketplace. MVIP interconnects switching and telephony processing boards on a PC. It spurred Dialogic to develop their own similar bus, SCSA, or the Signal Computing System Architecture. (Ultimately, the “bus wars” between Dialogic and NMS were resolved with the development of the H.100 bus for PCI computers, and the H.110 bus for CompactPCI computers.)
Now, Dialogic plans to leverage NMS expertise in mobile and other technologies. Video is an increasingly important element of a typical mobile phone call, and this is a big investment area for Dialogic. The amalgam of Dialogic video technology with the NMS Vision product line will enable a quicker time to market and a more complete product offering than either of us could have provided on their own. NMS’s well-known high-density technology enabling boards should complement the current Dialogic TDM, IP and hybrid technology enabling offerings.
A sign of how times have changed, whereas just about eight years ago Intel (News - Alert) purchased Dialogic for over $700 million, today a Dialogic is acquiring the NMS Communications Platforms business and associated assets and agreed upon liabilities for total consideration of $28M in cash, subject to certain adjustments.
It should be fun to see if and how the resident NMS genius, Brough Turner (News - Alert), deals with his former Dialogic competitors, now Dialogic brethren.
I’m sure it’ll be just one big happy family.
Dialogic is a gold sponsor of Internet Telephony Conference & EXPO — the biggest and most comprehensive IP communications event of the year.  ITEXPO (News - Alert) will take place in Los Angeles, California, September 16-18, 2008, featuring three valuable days of exhibits, conferences, and networking opportunities you can’t afford to miss.  Don’t wait.  Register now!

Richard Grigonis is Executive Editor of TMC (News - Alert)�s IP Communications Group. To read more of Richard�s articles, please visit his columnist page.

Edited by Michael Dinan

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