Wednesday, January 31, 2007

AudioCodes Acquires CTI Squared Ltd.

AudioCodes will acquire CTI Squared Ltd. ("CTI2"), a provider of enhanced messaging and communications platforms deployed globally by service providers and enterprises. CTI2's platforms integrate data and voice messaging services over Internet, intranet, PSTN, cellular, cable and enterprise networks. It employs approximately 30 people and they are based in Israel.

"This acquisition further strengthens our strategic initiative to become a key supplier of Converged IP Communication products and solutions to Service Providers worldwide," said Shabtai Adlersberg, Chairman, President and CEO of AudioCodes.

In November of 2006, AudioCodes and CTI2 announced that FASTWEB, Italy's second largest fixed telephony operator, is expanding its use of CTI2's InTouch platform, integrated with AudioCodes IPmedia Media Server, for advanced voicemail and unified messaging services.

In February of 2006, AudioCodes acquired 10% of the outstanding shares of CTI2 for a purchase price of $1 million, which was paid in cash. AudioCodes intends to exercise the option it also obtained to acquire the remaining shares of CTI2 for a total purchase price of $10 million, $5 million in cash payable by February 28, 2007 and $5 million in cash payable by February 28, 2008. The second installment payment may be reduced by certain claims against CTI2 arising prior to the second payment.