AT&T, Inc. has announced that it will acquire privately held Interwise Inc., a U.S. global provider of voice, Web and video conferencing services to businesses, for approximately $121 million in cash.
The deal will align Interwise’s IP-based conferencing and collaboration solution with AT&T's enterprise networking, communications and collaboration services, global MPLS-based IP network and its conferencing portfolio of services. The deal is expected to close in the fourth quarter.
AT&T indicated that after the acquisition Interwise will operate as a business unit within AT&T’s Global Business Services. AT&T also indicated that it expects to retain the management team at Interwise as well as its domestic and international operations, including a research and development center located in Israel.
Frost & Sullivan, a technology industry research firm, has estimated that the global Web, audio and video conferencing business is worth about $5.9 billion annually and according to market trends will continue to grow.