Sonus and Genband merge for IP- and cloud-based unified communications networks

Merger combines separate areas of expertise in virtualisation, cloud and UC

Real-time communication companies Sonus and Genband have agreed to form a jointly-owned holding company, in an attempt to create ‘a leader in next-generation communications technology.' The move will provide the emergent company, which will be equally owned by both firms, with increased scale and market reach.

The transaction will combine Sonus' software-based position in real-time communication virtualisation, cloud-based SIP and 4G solutions and security with Genband's network modernisation, unified communications and mobility and embedded communication solutions. The companies believe that, together, they will be positioned to enable moves towards IP- and cloud-based networks for customers worldwide.

The new company is initially valued at $745 million, and is expected to generate ‘at least' $100 million in annual EBITDA, and $140 million by 2020. The CEO will be Raymond Dolan, current president and CEO of Sonus.

Marty Parker, principal consultant at Unicomm Consulting, told UC Strategies, "This is a very natural market combination. We should expect more like this… For the past five years, we have highlighted the transformative role that directory-enabled gateways are playing in enterprise communication architecture, displacing many of the functions of the PBX with a far more economical solution with a better architecture at the edge of the enterprise network. Combined with Genband and the powerful Kandy communication customization platform, enterprises can re-invent real-time and messaging-based communications on their premises or in the cloud. The combined company can base their success on their large customer base spanning both on-premises enterprises and cloud-based CPaaS service providers."

The transaction is expected to close in the second half of 2017. It is another sign of the ongoing vendor consolidation in the UC market; and follows Mitel's acquisition of Toshiba's UC assets.

eal-time communication companies Sonus and Genband have agreed to form a jointly-owned holding company, in an attempt to create ‘a leader in next-generation communications technology.' The move will provide the emergent company, which will be equally owned by both firms, with increased scale and market reach.

The transaction will combine Sonus' software-based position in real-time communication virtualisation, cloud-based SIP and 4G solutions and security with Genband's network modernisation, unified communications and mobility and embedded communication solutions. The companies believe that, together, they will be positioned to enable moves towards IP- and cloud-based networks for customers worldwide.

The new company is initially valued at $745 million, and is expected to generate ‘at least' $100 million in annual EBITDA, and $140 million by 2020. The CEO will be Raymond Dolan, current president and CEO of Sonus.

Marty Parker, principal consultant at Unicomm Consulting, told UC Strategies, "This is a very natural market combination. We should expect more like this… For the past five years, we have highlighted the transformative role that directory-enabled gateways are playing in enterprise communication architecture, displacing many of the functions of the PBX with a far more economical solution with a better architecture at the edge of the enterprise network. Combined with Genband and the powerful Kandy communication customization platform, enterprises can re-invent real-time and messaging-based communications on their premises or in the cloud. The combined company can base their success on their large customer base spanning both on-premises enterprises and cloud-based CPaaS service providers."

The transaction is expected to close in the second half of 2017. It is another sign of the ongoing vendor consolidation in the UC market; and follows Mitel's acquisition of Toshiba's UC assets.