Rumor mill: All-stock transaction for GENBAND/NextPoint acquisition
How much did GENBAND pay for NextPoint? The unanswered question still remains, but sources say GENBAND put out a whole lot of stock to add the company to its portfolio. Exact terms of the deal and the precise valuation GENBAND put on NextPoint are still unknown, but the phrase “significant dilution” was used to describe the amount of stock issued for what was the number two player in the SBC market.
GENBAND had made no secret it was shopping for SBC and DPI technologies and preferably wanted a company with the number one or number two position in the market place. The purchase of NextPoint, the joining of NexTone and ReefPoint, took the biggest available SBC player available.
But did GENBAND pay too much for the company? NextPoint’s original piece parts received at least $100 million in venture capital. It is not known if GENBAND got a discount on the purchase price given the poor state of the economy, or if it had to pay close to list in stock. From what we’re hearing, it sounds like little quarter was given for a lower price.
Related articles
2008 VoIP best buy of the year – FierceVoIP
GENBAND adds NextPoint – FierceTelecom