Tekelec converges with IEX

Tekelec's purchase of IEX Corp. last week was the most recent development in a growing push to bring call control and service intelligence functions to data networking platforms.

The $163 million acquisition will allow Tekelec to add IEX's line of intelligent network elements to its SS7 platforms, resulting in a processing engine capable of adding a layer of intelligence to asynchronous transfer mode- and Internet protocol-based networks.

"Tekelec brings the signaling gateway and IEX brings the media gateway controller," said Michael Margolis, president and CEO of Tekelec. The company will aim that combined capability at manufacturers of ATM and IP switching gateways and directly at new and incumbent carriers, he said.

"There are some applications where people are building ATM and IP networks from scratch, and there are carriers with a combination of circuit-switched networks and ATM and IP that would like to be able to provide interworking between them," Margolis said. "Having the ability to consistently provision services independently of the underlying switching fabric is where the opportunity's going to be."

The companies believe that capability in the intelligent network realm-combined with Tekelec's diagnostic gear and IEX's call center solutions-make the combined company distinct from competitors angling for a share of any individual technology niches.

"We offer a complete set of enabling technology aimed at the [competitive local exchange carrier] and second-tier [Internet service provider] markets," said Gary Crockett, president and CEO of IEX. "It's difficult to point to an across-the-board competitor."

Under the terms of the agreement, IEX will become a wholly owned subsidiary of Tekelec, and Crockett will take an expanded role within Tekelec, Margolis said.