Tekelec agreed to acquire Taqua, a provider of next-generation Class 5 packet switching systems, for approximately $85 million cash, plus the assumption of Taqua's outstanding options. Taqua's Class 5 switching solution is optimized for the small switch service provider market. A small switch is defined as serving under 5,000 lines.
Founded in 1998, Taqua began shipments of the iX7000 (formerly branded the OCX next-generation Class 5 packet switch in 2000. The platform incorporates softswitch, signaling and media gateway functionality on a single-card design. Taqua has shipped over 140 switches shipped to more than 85 customers, a variety of incumbent (ILEC) and competitive (CLEC) carriers across North America . The company added 40 customers in 2003.
Tekelec described the acquisition as complementary to its existing product line, with little overlap of existing softswitch solutions. While Taqua has focused on small Class 5 switch migrations, Tekelec's Santera division has focused on Class 4, larger Class 5 and wireless softswitch solutions.
Following the acquisition, Tekelec will maintain the Taqua facilities in Richardson, Texas. Together with its existing base, Tekelec will have more than 110 next-generation voice switching customers. http://www.tekelec.comhttp://www.taqua.com
- In October 2003, Taqua introduced a new series of Class 5 switching system products designed for putting switching intelligence at the edge of the network while enabling an open architecture that can selectively deliver advanced applications to subscribers across any access medium. Taqua's design is to put softswitching functionality at central offices serving up to 80,000 subscribers as well as in remote-office locations serving 600 subscribers or less. This would provide flexibility in delivering advanced services when and where such capability is needed in the network. For remote office locations, Taqua's introduced the iX700, an intelligent line access gateway, based on its switch-on-a-card architecture. The iX700 can terminate 624 POTS or xDSL lines. It could be deployed in a remote-office or controlled environmental enclosure. It provides TDM or IP based trunking and can be configured with POTS, xDSL, DS1/E1 or IP interface cards. Signaling types supported include loop start, ground start, DTMF, MF, DP, GR-303, SFI, as well as SIP, SIP-T, NCS+DQoS, MGCP, and H.248. For central offices, Taqua's Open Compact Exchange has been renamed the iX7000 and enhanced with the addition of an IP card for delivering packet voice in addition to TDM. The iX7000 can be configured with POTS, DS1/E1, DS3/E3, OC-3/STM-1o, OC-12/STM-4o and IP interface cards. It also supports the same range of signaling types.
- In January 2003, Taqua secured over $20 million in new funding to support its next generation Class 5 switching system. The new funding brought total financing to over $140 million. The latest round was led by RRE Ventures, and also includes investments by Investcorp and Point Judith Capital Partners, as well as all of Taqua's existing investors: Bessemer Venture Partners, Columbia Capital and Court Square Ventures. In addition, Taqua also announced that Rich McGinn, a general partner at RRE Ventures, and former chairman and CEO, Lucent Technologies, and Alex Guira, partner, Investcorp, had joined its Board of Directors.
- In June 2002, Taqua named Charles Vogt as its new president and CEO. Vogt previously served as vice president of worldwide sales for Santera Systems. Prior to Santera, Vogt was vice president of worldwide sales and customer service at Accelerated Networks.
- In June 2003, Tekelec completed its merger with Santera Systems, which is based in Plano, Texas. Santera Systems offers an integrated voice and data switching platform for delivering Class 4/5 services, PRI offload, packet/cell switching and voice over broadband services. The SanterOne platform features both TDM and packet switching fabrics. Under the deal, Tekelec agreed to contribute $28 million in cash and its existing packet telephony business. Santera's current investors will contribute its assets and an additional $12 million in cash. Initially, the division will be 52% owned by Tekelec. Tekelec will also have the ability to increase its ownership percentage in the new subsidiary up to 62.5% and has the option to purchase the entire remaining interest from 01-July-2005 through 31-December-2007. The new business is called Santera, a Tekelec company.
