Intel Strengthens Telecom Offerings With Dialogic Buy

Intel Corp. this week announced it will acquire Dialogic Corp., a supplier of standard-based computer telephony products, for $780 million. Through the merger, Intel hopes to capture a larger chunk of the standard-high-volume server business in the networking and telecommunications industry. The acquisition of Dialogic -- which produces standards-based computer telephony software, network interfaces, and media processing boards -- would allow Intel to provide vendors with hardware and software for constructing integrated voice and data networks. "This merger strengthens Intel's position as a key supplier to the converging Internet and telecommunications industry," says Intel President and CEO Craig Barrett. "Our goal is to make Intel-based servers the foundation of e-business and communications applications based on integrated voice and data networks." Dialogic technology is used in voice, fax, data, speech recognition, call-center management, Internet Protocol telephony, and enhanced services applications. Dialogic earned $294 million in revenues in 1998 and has been growing at an average compound annual growth rate of 25% in the last five years. Intel is ranked No. 51 on the 1999 IW 1000 and earned $26.3 billion in revenues in FY1998. Neither company intends to make immediate changes in their product lines.