Voice-over-IP (VoIP) gateway provider Tdsoft Ltd. last week announced the acquisition of beleagured VoIP pioneer VocalTec Communications (Nasdaq: VOCL) via a share swap arrangement.
Following completion of the transaction, the shareholders of Tdsoft will own 75% of the outstanding share capital of VocalTec and the current shareholders of VocalTec will own the remaining 25%.
Under the arrangment, VocalTec will remain a public company and Tdsoft will become a wholly-owned subsidiary. Tdsoft is privately owned with strong investor backing from prominent US and international venture capital firms and corporations.
Cisco Systems International BV (a subsidiary of Cisco Systems Inc.) and HarbourVest Partners, LLC, currently major shareholders of Tdsoft, and Deutsche Telekom, currently a major shareholder of VocalTec, are expected to hold approximately 36%, 20% and 3.8%, respectively, of VocalTec's share capital.
Tdsoft chairman Ilan Rosen will be appointed as VocalTec's chairman, while management will be led by Tdsoft president and CEO Joseph (Yosi) Albagli.
"VocalTec has long been recognized in the market as the pioneer in VoIP technology, with major customers including Deutsche Telekom and Intelcom San Marino (a subsidiary of Telecom Italia Sparkle)" said Albagli. "The new company will employ VocalTec's superb technology in conjunction with Tdsoft's solutions and channel partners to develop and provide unique, best-in-class VoIP and multimedia products".
"HarbourVest's strategy is to invest in and support companies that lead in their field," said HarbourVest Partners managing director Robert Wadsworth. "Tdsoft has repeatedly proven its ability to identify market trends and to develop and bring to market products that are instrumental in enabling the migration of networks from one technology to the next generation. Harbourvest believes that with the addition of VocalTec's pioneering VoIP technology, talented team and valuable customers, the combined company is well positioned to create new value for its customers and investors."
VocalTec chairman and CEO Elon Ganor said, "We are pleased to have reached this agreement with Tdsoft and its shareholders, and believe this transaction will initiate important new business opportunities with carriers and new channels for both companies. We believe this transaction is in the best interests of both our customers and shareholders".
VocalTec is a telecom equipment provider offering next generation network (NGN) VoIP carrier class call control and hosted telephony platforms. The company's customer base includes Deutsche Telekom, Intelcom San Marino (a subsidiary of Telecom Italia Sparkle), RomTelecom and Hanoi Telecom.
Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, October 30, 2005