GenBand acquires NextPoint

GenBand, a global leader in IP gateways, announced today the purchase of NextPoint Networks, a provider of session border controllers (SBCs) and security gateways for fixed-mobile convergence. This latest in a string of acquisitions by GenBand is particularly significant for its mobile data initiative.

“I think it’s a good fit on the product side,” said Joe McGarvey, analyst with Current Analysis. “This fits in, especially on the mobile side. The security gateway is a really good fit for GenBand and for their channel partner strategy. NextPoint in the last six months made a lot of changes to position the company to take advantage of the explosion in mobile data. They are trying to be number one in the mobile session management world.”

Financial details of the transaction were not provided.

The NextPoint acquisition is part of GenBand’s broader strategy to tightly focus on the gateway space but also prepare for how that space evolves going forward, said Mehmet Balos, GenBand’s chief marketing officer. GenBand will now be able to compete in the IP-to-IP network space, beyond the traditional gateway role linking IP and TDM legacy networks.

“We know that gateways will evolve beyond the role of managing the transition to IP,” Balos said. “We are looking ahead to that evolution, to when gateways will be important in protecting and enabling the IP network.”

NextPoint is the number-two provider of SBCs on the fixed side with 14% of the market, well behind market leader AcmePacket at 48%, according to Infonetics Research. AcmePacket made its own major product announcement today.

“I don’t see NextPoint really challenging AcmePacket on the fixed side,” McGarvey said. “But they could be the AcmePacket of the mobile session management world.”