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Netifice Looks for VOIP Deals

Netifice Communications Inc., which this week bought the SSL VPN services arm of Aventail Corp., is not done with acquisitions, according to Greg Davis, the company's vice president of marketing (see Aventail Sells Managed Services Division).

We have been looking at IP telephony and, in particular, at VOIP," he tells NDCF. ”I would say that, in the next 12 months or so, you might see another deal coming through."

Money should not be a problem for the Costa Mesa, Calif.-based vendor. Netifice raised $55 million in Series E funding this week from Columbia Capital, Boston Millennia Partners, Dolphin Equity Partners, H.I.G. Capital, Fidelity Ventures, and Rho Ventures. Davis, says that “a sizeable piece” of this cash was spent on acquiring the Aventail division, although he was unwilling to reveal the exact value of the deal.

Nonetheless, there should be plenty of loose change left over for another foray into the M&A market. Michael Suby, program manager at analyst firm Stratecast Partners, believes that a move into the VOIP space makes perfect sense. "If you're Netifice, or anyone else, you want to go beyond data networking to data and voice," he says. "You want to serve your customers' full communication requirements."

But the Aventail deal is all about gaining an edge in the SSL VPN market. Telecom and Web hosting firms such as NTT/Verio Inc. and Virtela Communications Inc. are increasingly looking to offer advanced, SSL VPN-based security services to their customers (see Verio Enhances VPN Services and Virtela Publishes VPN Case Study).

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