VegaStream, a privately-held maker of voice-over-Internet-protocol (VoIP)
gateways, could be a "good fit" for companies manufacturing session
border controllers, said Robert Brakeman, VegaStream's general manager of the
Americas. Brakeman explained that some session border controller vendors, such
as Juniper Networks in California and Acme Packet in Massachusetts, may find
themselves at a competitive disadvantage if they are unable to also offer
gateways - like VegaStream provides - at a time when giant Cisco Systems sells
both.
Gateways provide access from one network to another. Session border
controllers control signals over an Internet network.
Brakeman named Tellabs, whose core products are gateways, as another
potential VegaStream buyer.
Tomorrow, UK-based VegaStream will announce a USD 4m investment from venture
capitalists Noble Group. Brakeman said, however, that the cash infusion does
not dull VegaStream's interest in an exit. Brakeman declined to say whether
VegaStream has retained an investment bank.
He mentioned that VegaStream had received an offer from a private equity
firm since a management buyout three years ago, but the company would prefer a
buy from a strategic player. He said a return on investment alone held little
interest for VegaStream. The company would prefer a buyer that continued to
market its product.
VegaStream anticipates generating revenue of approximately USD 10m in 2006.
by Sarah Cohen
