Intel Buys DataKinetics

Intel Buys DataKineticsNews from E-InSite
Intel Corp. said today it has acquired privately held DataKinetics Ltd in a cash transaction. Terms of the deal were not disclosed.
Intel said the acquisition will provide it with products, technologies and industry expertise that will extend its capabilities to provide next-generation network equipment and products. Intel hopes to provide its telecommunications and networking customers with an expanded ability to create voice-based Internet and e-commerce applications and services based on DataKinetics products.
Intel has made more than two dozen cash acquisitions of telecommunications and networking companies over the last two years.
DataKinetics, based in Fordingbridge, England, is a supplier of Signaling System 7 (SS7) hardware and software products. SS7 protocols serve as the basis for controlling telephone networks and are used to provide advanced functions such as wireless Internet capability and the ability to link Internet Protocol (IP) and telephone networks, as well as other features like caller ID, automatic recall and call forwarding. SS7 technology is the most broadly deployed signaling technology in voice and wireless cellular networks, the company said.
DataKinetics? SS7 technology will work with products from Intel?s Dialogic subsidiary to enable converged voice and data network functions. Such functions include IP telephony capabilities that allow phone calls over the Internet, the creation of voice portals (for accessing Web sites using voice commands) and Internet-based unified messaging platforms that bring voice, fax, e-mail and other capabilities to a single client device.
In addition to products from DataKinetics, the acquisition provides Intel with an engineering organization and additional core communications technology. The Santa Clara, Calif.-based chipmaker said it will use DataKinetics? SS7 capabilities combined with next-generation signaling protocols such as the Media Gateway Control Protocol (MCGP), Megaco, Simple Internet Protocol (SIP) and H.323 to form the heart of next generation converged voice and data networks.
“We?re looking to incorporate the SS7 technology into some of the Dialogic products so our customers can in turn build products based on these technologies,” an Intel spokesman said today.
“This acquisition is a natural progression in the relationship between the two companies,” said Laurie Gooding, analyst for Cahners In-Stat Group, a research firm based in Scottsdale, Ariz. “DataKinetics had a dwindling market beyond Dialogic, because everyone knew they were Dialogic?s main supplier.”
The acquisition creates “more core enabling technology with more core competencies within Dialogic, so they can roll out enhanced applications faster. It?s easier for them to support these applications on own their platform,” Gooding said. “This will be a key to their future success. It?s possible they are looking to offer more complete solutions to customers directly. Whether or not they?re looking to offer complete turnkey solutions remains to be seen.”
The agreement marks Intel?s continued aggressive policy of acquiring companies in the telecommunications and networking fields. In February, Intel announced cash acquisitions of Ambient Technologies Inc. and Thinkit Technologies Inc. The purchases followed 12 similar deals over the previous 12 months.
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