Looks like we are smack in the middle of a session border control buying frenzy. And the prices are falling! Ditech Communications paid about $20 million and acquired Jasomi Networks. In comparison, Kagoor Networks was snapped up by Juniper for around $67 million. Under the terms of the agreement, the stockholders of Jasomi Networks will receive approximately $20 million, with payment divided into approximately $13 million in cash and $7 million in convertible notes. The consolidation in the space indicates that despite good business conditions for sbc companies, the telecom IPOs are still unlikely to happen anytime soon. Looks like Jasomi’s angel backers did better than the venture backers of Kagoor. Dan Freedman, CEO and founder of Jasomi had predicted less than two months ago that a wave of consolidations in the SBC business was coming. Who is next? Nextone Communications?
One thought on “Session Border Control Buyout Frenzy”
Om…time for a sequel to your article “The New Road to Riches…Build a Company Cheap, Flip It Fast, Repeat”. VOIP (hardware + software) certainly seems heading in that direction. Any other sectors that are heading the same way?