San Diego-based Telanetix is paying $34.9 million in cash and stock for AccessLine Communications in Bellevue, one of the early players in Internet telephony.
All 115 employees of AccessLine’s employees will be retained, said Chief Executive Doug Johnson, a McCaw Cellular veteran who has run the company since 2002 and will continue with the merged company.
The Bellevue office will now focus on developing voice products and provide administrative support for the merged companies.
“We believe that we found a partner in Telanetix that allows us to continue and complete the dream of delivering this hosted VoIP product to the SMB marketplace,” he said.
AccessLine seemed like a potential gold mine after it was founded in 1986 and raised more than $109 million from investors who saw the direction telecommunications was heading.
Now it’s a hugely competitive industry with companies big and small offering a huge range of IP-based telecom services. Telanetix offers telepresence products that compete with Cisco, and Microsoft is moving aggressively into VoIP.
After Johnson became chief executive, he refocused the company from a broad provider of hosted services to a VoIP company targeting small to mid-size businesses.
In 2006 AccessLine had gross sales of $24.3 million and expects sales of $2 million a month by through the end of 2007.
Telanetix said the acquisition will allow it “to target AccessLine’s substantial customer base, who is already thriving on an IP Platform. Telanetix will now be able to offer their customers voice, data and video simultaneously over ubiquitous IP networks.