Dialogic devours NMS hardware biz

Dialogic is buying NMS Communications Platform business for the lump sum of $28 million in cash, subject to the signoff of NMS stockholders. It is the latest in a long string of acquisitions by Dialogic, and it gives the company a dedicated footprint in the mobile services market.

For its money, Dialogic gets NMS's Open Access family of boards and APIs, including PacketMedia Host Media Processing and the Vision family of servers and gateways. In a press release, CEO Nick Jensen said NMS will be an "important asset" in the mobile value-added services market segment moving forward.

Video is key in this acquisition. Jensen has been bullish on mobile video for quite some time. Earlier this year, Dialogic acquired OpenMediaLabs for its personnel and core experience developing and working with video algorithms. Acquisition of NMS products and boxes lines provides more hardware options to deploy mobile video solutions.

NMS's existing customer base in the mobile video space and the equipment supplier to independent sister company LiveWire Mobile are also nice assets for Dialogic to have on tap.

Trying to keep track of Dialogic's list of acquisitions is becoming an increasingly challenging task and is not likely to get easier in the future. The businesses acquired by Dialogic and Jensen over the years include Cantata with all of its diverse assets and Intel's media and signaling business (where the original Dialogic name comes from). 

In remarks at an analyst conference this spring, Jensen indicated a taste for companies in the deep packet inspection (DPI) and security space to round out the portfolio. He also noted that the time was right for acquisitions, with company valuations down, venture money tight, and carriers wanting to deal with larger, more financially stable companies.

For more:
- Read Dialogic's announcement to acquire NMS Communications hardware division

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