Intel tightens telecoms grip

Intel has snapped up computer telephony company Dialogic for $780 million as the chip giant looks to capture the growing convergence market.

According to Intel, the purchase is aimed at expanding Intel's standard high-volume server business in the multi-billion dollar networking and telecoms market by providing vendors with standards-based hardware and software building blocks for integrated voice and data networks.

Dialogic's products are used in voice, fax, data, speech recognition, call centre management and IP telephony in the enterprise and service provider sectors.

Craig Barrett, president and chief executive officer of Intel, said: 'This merger strengthens Intel's position as a key supplier to the converging internet and telecoms industry.'

Under the terms of the deal, Dialogic will become a wholly owned subsidiary of Intel, reporting within Intel's Enterprise Server Group. Dialogic staff will continue as employees of the subsidiary, while Howard Bubb, president and chief executive officer of Dialogic, will join the chip manufacturer as a vice president of the enterprise server group.

Both companies insisted that there were no plans for any immediate changes to their respective product lines.