When you are referencing NT and VOIP, the first small-cap that comes to mind is AudioCodes (AUDC).
audiocodes.com
AudioCodes Announces Acquisition of UAS Product Group from Nortel Networks
AudioCodes to acquire selected assets from Nortel Networks and serve as its exclusive supplier for Universal Audio Server for three years
Yehud, Israel – April 7, 2003
AudioCodes Ltd. (NASDAQ: AUDC), a leading provider of Voice over Packet (VOP) technologies and systems, announced today that it has entered into an agreement with Nortel Networks* (NYSE: NT) to acquire selected assets and serve as an exclusive supplier to Nortel Networks for the Universal Audio Server (“UAS”), a product integrated into Nortel Networks Carrier Succession solution*, for a period of three years.
The UAS product provides enhanced conferencing, multi-language announcement functionality, and other regulatory media server applications for voice over packet networks. AudioCodes will leverage the UAS product and technology to further enhance its Media Server product line and to expand the sales of these products and Media Gateway products to additional Network Equipment Providers (NEPs) and OEMs.
The completion of the transactions contemplated by this agreement, currently scheduled for the end of April, 2003, continues to position AudioCodes as a leader in enabling the new voice infrastructure. As part of the terms of the agreement, the research and development and support employees of Nortel Networks dedicated to the UAS business, consisting of approximately 20 people, will transfer to AudioCodes’ US subsidiary, AudioCodes Inc., and AudioCodes Inc. will acquire certain assets related to the development and support of the Universal Audio Server product line. In addition, Nortel Networks will grant to AudioCodes Ltd. a license to Nortel Networks technology used in the UAS business. The parties will enter into a development agreement in relation to future platforms, under which AudioCodes will develop additional functionality, which will further enhance its IPmedia™ 2000 Media Server platform based on UAS licensed software.
The consideration for the transaction consists of an upfront payment of $2 million, the payment of $2 million on the 6-month anniversary of the closing and $1.5 million on the 12-month anniversary of the closing. In addition, AudioCodes will pay up to $12.5 million based on net orders for UAS products placed by Nortel Networks over an 18-month period following the closing of the transaction. AudioCodes will also pay $1 million upon Nortel Networks completing the integration of the IPmedia 2000 into Succession.
Additionally, the transaction includes a Master OEM supply agreement covering a range of additional AudioCodes’ products including the IPmedia 2000 Media server and the Mediant™ 2000 Media Gateway. Both products are expected to be rolled into various Nortel Networks voice over packet solutions.
“We look forward to strengthening our already close relationship with Nortel Networks, one of the industry’s leading telecommunications providers,” said Shabtai Adlersberg, President and CEO of AudioCodes. “We anticipate this transaction and the subsequent sales of system products to Nortel Networks will establish AudioCodes as a leading equipment provider in the voice over packet market, and that it will further promote AudioCodes’ systems business and partnerships with other leading telecommunications NEPs.”
AudioCodes’ media server and media gateway platforms benefit its target customer base of NEPs and OEMs by accelerating and enhancing their packet-based network solutions in wireline, wireless, cable, enterprise and IP Centrex markets around the globe. More information on the current UAS product can be found at nortelnetworks.com.
Shabtai Adlersberg, Mike Lilo and Ben Rabinowitz of AudioCodes, will discuss the matters referenced herein in a conference call this Tuesday morning (April 8, 2003) at 9:00 a.m. (EDT). Those who wish to listen to the call live over the web may do so by going to the following site: html/invest_message.shtml |
