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The final nail in Netspeak’s coffin..


>From VentureWire:

VoIP Software Firm ADIR Buys NetSpeak for More Than $46M   NEWARK, N.J. (VENTUREWIRE) — After spinning out of Net2Phone earlier this week, ADIR VoIP Technologies, which provides voice-over-IP management software, said it has agreed to acquire publicly held NetSpeak, a Boca Raton, Fla.-based provider of network and infrastructure management software, in a deal valued at between $46.5 million and $48.2 million. ADIR also announced an additional $21 million in funding to finance part of the acquisition. ADIR will pay between $3.00 and $3.10 a share for all outstanding shares of NetSpeak common stock. The company is funding the acquisition with $21 million in equity financing raised from existing investors Cisco Systems, Net2Phone, and Softbank Asian Infrastructure Fund. This is in addition to ADIR’s $25-million second round from Cisco and Softbank Asian, announced earlier this week. ADIR will also fund the acquisition through assuming NetSpeak’s cash and cash equivalents. NetSpeak currently has about $20 million in cash. The deal is expected to close in the third quarter. Kirkland and Ellis advised ADIR, while Broadview International advised NetSpeak. In valuing the deal, ADIR weighed the time it would take to develop the technology itself, said ADIR CEO David Greenblatt. With $18 million in 2000 revenues, NetSpeak was close to breaking even; it spent $21 million in expenses for that same period. The two companies became acquainted with each other through collaborations in the Cisco Service Provider Solutions Ecosystem program. The combined company will retain ADIR VoIP Technologies’ name and will remain private. Mr. Greenblatt, who was COO of Net2Phone, will serve as CEO of the combined company. NetSpeak CEO Mike Rich will become president and COO of ADIR. The approximately 110 NetSpeak employees will remain in their current offices, though ADIR has not determined whether there will be any redundant positions. ADIR employed 45 before the acquisition. ADIR will retain NetSpeak’s Boca Raton, Fla., offices, though executives will be based in Newark, N.J. The NetSpeak brand will be retained as well, and ADIR has no plans to discontinue any product lines. ADIR will break even in the third quarter of 2002, said Mr. Greenblatt. The company is looking to grow through mergers, and may consider other deals this year, he said. To date, ADIR VoIP Technologies has raised $69 million in equity financing from Cisco, IDT, Net2Phone, Softbank Asian Infrastructure Fund, and Softbank Venture Capital.

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