Juniper Makes $67.5M VoIP Buy

The network equipment giant buys Kagoor to help carriers roll out secure and reliable VoIP.

By Colin C. Haley | Posted Mar 29, 2005
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Network equipment giant Juniper will pay $67.5 million cash for VoIP specialist Kagoor, the companies said today.

Kagoor's session border control (SBC) products are used by more than 100 carriers, most of which also use Juniper routers. In addition, Kagoor has partnerships with other industry leaders, including Lucent, Siemens and NEC.

SBCs sit at the network edge and ensure the reliable flow of real-time IP traffic across network boundaries. They enable carrier-to-carrier peering, carrier-to-enterprise service enablement and carrier-to-consumer service enablement.

Although based in San Mateo, Calif., privately held Kagoor has a research and development facility in Herzelia, Israel. Juniper will use this as a base for a new Israeli R&D center to tap into engineering talent there.

A Juniper spokeswoman was not immediately available for comment.

"Network operators worldwide are increasingly looking to deliver enhanced VoIP and other rich services to their enterprise and consumer customers, but they need to do this in a secure and assured fashion," said Kittu Kolluri, Juniper's general manager of security products, in a statement. "SBC technology is a key element in delivering these attributes."

The acquisition is expected to close during the second quarter. Kagoor was founded in 2000 and generated fewer than $5 million in revenue during 2004, so the pickup won't have much impact on Juniper's finances.

The deal will dilute less than 1 cent per share this year from earnings and will be accretive in 2006, Sunnyvale, Calif.-based Juniper said.

In other sector news today, Nortel said it has won a new wide-ranging contract from the U.S. Department of Defense (DoD). A spokeswoman for Nortel said the deal was worth $20 million.

The network equipment giant will work with DoD on enhancing its communications systems, deploying new applications and improving control and responsiveness during times of crisis.

The project, which involves upgrading hardware and adding new software, will be accomplished in about one year with help from systems integrators General Dynamics and Computer Sciences Corp.

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