AudioCodes Acquires Nortel's Universal Audio Server Products

AudioCodes agreed to acquire selected assets and serve as an exclusive supplier to Nortel Networks for the Universal Audio Server ("UAS"), a product integrated into Nortel Networks Carrier Succession solution, for a period of three years. The UAS product provides enhanced conferencing, multi-language announcement functionality, and other regulatory media server applications for voice over packet networks. As part of the deal, AudioCodes agreed to an upfront payment of $2 million, the payment of $2 million on the 6-month anniversary of the closing and $1.5 million on the 12-month anniversary of the closing. In addition, AudioCodes will pay up to $12.5 million based on net orders for UAS products placed by Nortel Networks over an 18-month period following the closing of the transaction. AudioCodes will also pay $1 million upon Nortel Networks completing the integration of the IPmedia 2000 into Succession. Additionally, the transaction includes a Master OEM supply agreement covering a range of additional AudioCodes' products including the IPmedia 2000 Media server and the Mediant 2000 Media Gateway. AudioCodes said it would leverage the UAS product and technology to further enhance its Media Server product line.
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