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Enghouse Systems strengthens software side with Dialogic buy

Dialogic will provide Enghouse with network infrastructure facilitating virtualisation, the evolution to 5G networks and the transition of networks from hardware to software-defined connectivity.

Johannesburg, 04 Mar 2020

The year is still a couple of days old, and already an acquisition has been struck by Enghouse Systems to strengthen its portfolio. The contact centre solution provider has splashed out $52 million for Dialogic Group to gain access to the firm's software expertise.

Many of the industry predictions have included comments about the positive prospects for unified communications (UC) in the year ahead, as more users look to upgrade ageing infrastructures. UC has been a strong area for resellers, particularly those selling into the SME customer base.

Dialogic provides software used by mobile operators and system integrators, and is expected to generate revenues of between $58 million and $63 million in the next year. The firm specialises in media processing tools that allow users to enjoy real-time video conferencing and collaboration across numerous devices. The product portfolio also includes a session border controller and some software-based network solutions for communications service providers.

The firm divested its hardware operation a year ago to concentrate solely on the software side of the business. In his end of year blog the firm's director of architecture, Chris Boulton, stated that its UC platform was challenging some of the incumbent vendors.

"It’s not just about evolution of the products, but also a shift in mindset related to how they are utilised. Dialogic has been at the forefront of both public and private cloud technology, while at the same time not abandoning its roots in on-premises solutions. The cloud industry itself is constantly evolving, and keeping pace is not without its challenges. I expect that theme to continue in 2020," he wrote.

The success that the Dialogic BUZZ platform has enjoyed in 2019 was one of the main reasons Enghouse opted to make the purchase.

"This acquisition strengthens our position in the enterprise video and UC market segment by adding rich multi-media processing applications and capabilities," said Steve Sadler, chairperson and CEO, Enghouse Systems.

With the industry getting excited about 5G, the additional tools that Dialogic brings in that environment were also appealing.

"In the communications service provider market, Dialogic provides network infrastructure solutions that facilitate virtualisation, the evolution to 5G networks and the transition of networks from hardware to software-defined network connectivity. We are very pleased to welcome Dialogic's employees, customers and partners to Enghouse," added Sadler.