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.

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