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Cisco Acquires Sipura for $68M
By Mark Evans | April 26, 2005
I'm starting to get a better idea why there is a lack of VOIP IPOs - before a company gets to go through the process, it gets snapped up. The latest “victim” is Sipura Technology Inc., which makes VOIP adaptors (a.k.a ATAs). It has accepted a US$68 million cash and options deal from Cisco, which will integrate Sipura into its Linksys SOHO division. This deal isn't a surprise given Sipura's founders also started Komodo Technology, which was acquired by Cisco in mid-2000 for US$175-million. When Jan Fandrianto and Dr. Sam Sin left Cisco to start Sipura, Cisco struggled in the ATA business. As a result, buying Sipura now makes complete sense if Cisco wants to stay in the game. Let's see how long Frandrianto and Sin stick around this time.
This deals comes on the heels of Juniper Networks buying Kagoor Networks for $67.5 million last month. Kagoor had sales last year of $5-million.
One day, it would be nice to see a VOIP IPO but maybe the capital markets landscape isn't friendly enough these days. Or perhaps small companies are troubled by the cost of being publicly-traded given the demaands of Sarbanes-Oxley. Maybe Vonage will be the IPO guinea pig later this year - although I believe it will be acquired before that will happen.
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