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Intel Will Acquire Dialogic

Intel Corp. has announced that it will acquire Dialogic Corp. (www.dialogic.com), a computer telephony company, for approximately $780 million, or $44 per share, all cash.

The chip giant will use the acquisition to expand its standard-high-volume (SHV) server business in the networking and telecommunications market segment by providing vendors with tools for integrating voice and data networks.

Dialogic provides technical services that industry manufacturers, application developers and service providers can use to develop solutions for combined voice and data networks.

Under the agreement, Dialogic will become a wholly owned subsidiary of Intel, reporting within Intel's Enterprise Server Group. Dialogic employees will continue as employees of the subsidiary and the companies do not anticipate any immediate changes to their respective product lines. Dialogic intends to deliver products to customers under existing agreements.

Howard Bubb, president and CEO of Dialogic will join the Intel team as a vice president of the company's Enterprise Server Group and continue as president of the Dialogic subsidiary. "This merger benefits Dialogic and its customers by broadening our products and services to accelerate the emergence of high value, open communications servers and solutions," says Bubb.

The Board of Directors of Dialogic has already approved the agreement and has unanimously recommended that stockholders tender their shares for the offer. The cash offer is open until July 2. Dialogic stock closed at just over 33 on Friday and had jumped over 10 points to 43 and a half when this story was filed today. -- Brian Ploskina

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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