Siemens AG has acquired Chantry Networks, a step that will extend its enterprise offerings and Voice over Internet Protocol into the wireless local area network space.
The deal climaxes both companies’ relationship during the past few years, which involved Siemens’ efforts to step up its HiPath series of products to meet industry’s accelerated strides toward WLAN technology. The German vendor’s funding group, Siemens Venture Capital, contributed $17 million in a series B funding round for the startup.
Chantry, which has a development center in Toronto, offers solutions for wireless convergence of voice and data transmission. The companies, which expect to close the deal in early 2005, did not disclose the terms of the transaction.
“Through this agreement of acquisition, we will further expand our communication architecture for corporate customers and strengthen our market position in this sector. In the growth area of WLAN, we will also now be able to offer our customers a future-oriented solution,” explained Andy Mattes, member of the group board of Siemens Communications. “With its Chantry team and its BeaconWorks product line, we have found just the right partner to optimally supplement our portfolio with wireless voice-data convergence.”
Chantry’s products integrate central security solutions for WLAN networks, and its BeaconWorks device can route around dud nodes. Siemens’ HiPath is a second-generation product for enterprises. With this deal, the German player can step up its VoIP offerings into the WLAN arena. It currently holds about 38.6 percent of the VoIP space, according to industry watchers, and serves big companies such as IBM Corp., BMW, Ford, Deutsche Bank, Volvo, Kodak, SAP and DaimlerChrysler.
Chantry’s products also have a roadmap to WiMAX, and its access points can integrate devices from third-party vendors, said Siemens.
“This announcement is a watershed event for the industry,” said Peter Vicars, president and chief executive officer of Chantry Networks, adding that the HiPath portfolio with Chantry’s solutions will bring “a compelling value proposition to customers and Siemens partners around the globe.”
