Enghouse Snaps Up Vidyo Inc.
Two communications giants join forces
Leading provider of enterprise solutions software, Enghouse Systems Ltd have announced their acquisition of Vidyo Inc. Vidyo is a brand dedicated to enriching conversations by embedding real-time video solutions into the digital communications landscape. Around the world, millions of people rely on services and solutions from both Enghouse and Vidyo every year.
The acquisition took place on the 15th of May 2019, for an approximate purchase price of $40 million (see analyst recation to this price below). On average, Vidyo earns about $60 million each year.
Why Did Enghouse Buy Vidyo?
Enghouse Systems serves enterprise software solutions to companies around the world in a variety of vertical markets. The company is committed to creating a diverse portfolio of offerings, thanks to its strategic acquisitions. Vidyo is a leading provider of enterprise-class video software solutions intended to provide better visual communications across a range of endpoints and networks.
With Vidyo, Enghouse will be getting a company whose innovative infrastructure software platform can leverage patented video management, routing, and interoperability solutions. Vidyo’s approach to video communications allows them to deliver security, scalability, and reliability to their customers, whether they’re based on the cloud, on-premises, or in a hybrid environment.
Vidyo also has the benefit of a vast framework of accessible APIs. These application programming interfaces will allow enterprise developers to take a DIY approach to improve their communications strategy, by embedding video communication into third-party workflows, applications, and devices.
A Strong Partnership for Both Companies
Like Enghouse, Vidyo has a positive reputation in a variety of vertical markets, including the financial and healthcare institutions, where reliability, good video quality, and specialization in end-user support is crucial. Currently, Vidyo systems are deployed across about 120 financial institutions and 400 hospital networks. Additionally, Vidyo is responsible for offering visual communication strategies to the broader enterprise collaboration market, with a range of use cases in IoT, field services, and public safety.
According to the CEO and Chairman of Enghouse, Steve Sadler, the suite of real-time video collaboration options provided by Vidyo is complementary in combination with the Enghouse portfolio. The Enghouse team is thrilled to be welcoming Vidyo’s employees, customers, and partners into their growing community.
In a recent press release, the Chairman and CEO of Vidyo, Michael Patsalos-Fox, said that Vidyo is excited to be joining Enghouse. Vidyo believes that Enghouse has a complementary product portfolio and will give them the chance to continue amplifying its strategy for continued innovation and video communication growth. The Chairman of Vidyo also noted that he believes the transaction to be an excellent deal for Vidyo’s partners and customers.
Analyst reaction seems to suggest that the Vidyo purchase price was great value:
Rumours around their future have been circulating, and it’s @EnghouseInterac that acquires @Vidyo for $40m. A surprising price for a product that seems to power a lot of customer engagement solutions’ video? #videoconf #customerengagement https://t.co/Jd22pGhrv1
— MZATim (@MZATimGelardi) May 15, 2019
Real-time video communications vendor and provider @Vidyo has been acquired by enterprise software provider @EnghouseInterac for ~ $40M. What an amazing world! https://t.co/7x71T4dRRJ #videoconferencing #uc #collaboration #acquisition @ReconRes
— Ira Weinstein (@iweinstein) May 15, 2019