GenBand acquires NextPoint

Buying NextPoint made sense from a product standpoint because the two companies’ product portfolios are complementary, with no overlap, Balos said. NextPoint’s SBC and security gateway products will help round out the GenBand product portfolio.

“We looked at a lot of companies before we honed in on NextPoint,” Balos said.” We have no product overlap, there is complimentary functionality to each other’s products. And their products are all standards-based, carrier-class products, so that fits well into what we are doing. We have in the next five years, for the gateway market, we have about a $9 billion market. When we look at new products such as security gateways and SBCs – they add a very conservative $3 billion to the available market for the next five years, giving us an addressable market of $12 billion.”

In addition, NextPoint just moved to a channel distribution strategy from a direct sales strategy, Balos said. One key to GenBand has been its channel relationships with major vendors including Alcatel-Lucent, Nokia Siemens Networks, NEC, Motorola, Nortel Networks and others.

“We can take NextPoint’s products through these channels easily,” Balos said. “We have become a trusted partner for them.”

NextPoint was the combination of NextTone, an SBC company, and ReefPoint, a security gateway company.