Enghouse Systems strengthens software side with Dialogic buy

The year is only a couple of days old but already an acquisition has been struck by Enghouse Systems to strengthen its portfolio. The contact centre solution provider has splashed out $52m 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 comms 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 in the next year between $58 to $63m. The firm specializes in media processing tools that allow users to enjoy real-time video conferencing and collaboration across numerous devices. The product portfolio also includes as session border controller and some software-based network solutions for comms 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 unified comms 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 utilized. Dialogic has been at the forefront of both public and private Cloud technology while at the same time not abandoning its roots in on-prem 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 unified communications market segment by adding rich multi-media processing applications and capabilities," said Steve Sadler, chairman 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 virtualization, 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.