In a move designed to expand the variety of products Intel will offer in the booming networking and telecommunications market, the company announced yesterday that it will buy Dialogic.
Intel will take over Dialogic for $US44 per share in a cash tender offer valued at $US780 million, company officials said. The offer will commence on June 7 and expire July 2.
Dialogic produces computer telephony software, network interfaces and media processing boards that run on Intel-based servers. The products are used in voice, fax, data, speech recognition, call centre management and IP (Internet protocol) telephony in both enterprise and service provider markets.
Intel is looking to increase its role as a supplier of products to the converging Internet and telecommunications industry, said John Miner, Intel vice president and general manager of the enterprise server group.
"The real goal that we are looking for is tying into Dialogic's expertise in telecommunications," Miner said. "It has a very successful business and we want to effectively put it on steroids to make it grow faster."
The companies plan no immediate changes in their product lines, Miner said.
New Jersey-based Dialogic will become a wholly-owned subsidiary of Intel within Intel's enterprise server group. The company's 1200 employees will be retained, officials said. Dialogic had 1998 revenues of $294 million.
On the Nasdaq stock exchange, Intel stock closed at $50.7, down 3.3, while Dialogic stock closed at $43.4, up 10.