AudioCodes Acquires Nuera

Just a quick post to acknowledge this acquisition. Nuera was one of the very first companies I followed when I started with VoIP in 2001, and they truly are one of the last independents from that time. I've always wondered why they weren't acquired sooner, especially now that they've built up such a nice business in red-hot cable space. I've known for some time that they were open to being acquired, so it's not that surprising.

Much like the recent Comverse/NetCentrex deal, this is another sign of consolidation in the VoIP market, as small and mid-sized vendors bulk up to keep pace with the incumbent vendors, who are all trying to sell into a carrier market that itself is consolidating.

In this case, however, the companies have more common ground in terms their product mix. Maybe for AudioCodes, the $90 million investment is a price worth paying to have one less vendor to compete against. On a business level, as the Light Reading article notes, the move gives AudioCodes a nice entree into the North American cable market, which has lots of room to grow.

Nuera has always remained small - only $16 million in sales - which seems to have been the fate of many nextgen vendors who have been acquired recently, such as VocalTec, VocalData, Jasomi and Kagoor.

Just a quick aside - it's interesting to note how this is another case of an Israeli company growing through acquisition, just like Comverse.