RealTime IT News

Terayon Buys Internet Telecom

With an eye on voice-over-IP, Broadband network systems supplier Terayon Communication Systems, Inc. this week purchased Israel-based Internet Telecom for approximately $40 million in an all-stock deal.

Terayon (TERN) expects the buy to support rollout of its VoIP solutions later this year. The deal will also support the company's line of DSL products.

Internet Telecom's suite of VoIP offerings voice compression algorithms, digital signal processing code, signaling protocols for the major worldwide telephony standards, and software systems to enable communication over IP networks.

The systems are planned to adhere to PacketCable and other interoperability standards.

"Internet Telecom's impressive voice technology complements the robust broadband voice systems we are shipping today, providing not only a path to highly efficient voice-over-IP systems for cable and DSL, but also a key addition to Terayon's growing systems-on-silicon portfolio," said Zaki Rakib, Terayon chief executive officer.