Tekelec, a leading developer of telecommunications products for next-generation fixed, mobile and packet networks, today announced a key milestone in the development of its Real Convergence strategy. Tekelec has purchased German and Czech-based iptelorg GmbH, developer of leading-edge Session Initiation Protocol (SIP) routing software, securing a critical IP Multimedia Subsystem (IMS) capability for Tekelec.

"We've been collaborating with iptelorg for the past year because of the fast, purpose-built Call Session Control Function (CSCF) capabilities of its SIP Express Router," said Fred Lax, Tekelec CEO. "What became clear to us was that we wanted to do more than license this technology - we wanted to own it, build on it and make it a central part of our IMS strategy to bring the same level of carrier-grade reliability, scalability and innovation to our customers' rapidly growing SIP signaling needs that we provide for their SS7 networks."



iptelorg's SIP Express Router has proven its reliability, speed and value in real-world commercial implementations, anchoring offerings from T-Online International AG and EarthLink, Inc., among others. Its technology is optimized for Tekelec's integrated communications solutions, including the industry-leading EAGLE(R) 5 Signaling Applications System platform.

"The fact that IMS networks are very signaling intensive plays to our strength," Lax continued. "Integrating SIP-signaling applications with our SS7 applications provides a perfect complement to our portfolio, supporting customers with legacy and next-gen environments alike. We help operators evolve their networks at the pace and scale that make sense for their businesses."

Tekelec's leadership in current-generation signaling enables wireline and wireless voice networks to initiate, modify and terminate calls, adding the ability to offer and manage key applications like mobility, call forwarding, number portability and security. SIP routing extends Tekelec's leadership in high-reliability, high-throughput signaling to next-generation networks.

Bringing SIP routing fully in-house further integrates Tekelec's hosted VoIP application servers, softswitch, wireless/wireline media gateway portfolio and billing/network intelligence servers into Real Convergence solutions for customers. This capability lets operators create individual strategies to strengthen their businesses, incorporating revenue-producing offerings like messaging, voice over WiFi, VoIP, presence and other emerging applications. A Tier 1 U.S. operator already is trialing this SIP routing technology as part of a Tekelec IMS solution.

"We will continue to deliver complete signaling solutions that raise the bar for the industry," stated Fred Lax. "We are combining that signaling strength with our growing leadership in the total next-generation switching and applications space to provide our customers with powerful IMS solutions. Jiri Kuthan, Dr. Dorgham Sisalem and their fellow developers at iptelorg are SIP innovators. We are excited to have them join Tekelec to help us extend our leadership in the industry."

Tekelec purchased 100 percent of iptelorg's outstanding stock for approximately $7 million in cash, plus $4 million of Tekelec shares, which are subject to repurchase for a nominal amount if certain of the former iptelorg shareholders terminate their employment with Tekelec within four years. iptelorg will be integrated into Tekelec's Network Signaling Group. Tekelec expects the transaction to have no material impact on its financials, excluding any potential non-cash, in-process research and development charge.