Top U.S. phone company AT&T said on Monday it plans to acquire privately held Web-conferencing provider Interwise for about $121 million in cash. AT&T said the acquisition is aimed at bolstering its Global Business Services, the company's corporate customer segment, amid growing popularity of Web conferencing various business meetings. Interwise's rivals include WebEx, which was bought by Cisco Systems earlier this year for around $3.2 billion, and Centra. Ronald Spears, president of AT&T's Global Business Services, said in a statement that Web conferencing helps employees work on "joint projects simultaneously with colleagues and partners, share information regardless of their location or device, and make better business decisions."
Technology research firm Frost & Sullivan estimates that the global Web, audio and video conferencing business is worth $5.9 billion annually, and is due to keep growing. The deal is expected to close in the fourth quarter. AT&T said it expects to retain Interwise's management team and its domestic and international operations, including its R&D center in Israel. Cambridge, Mass.-based Interwise employs around 150 people and has operations in the United States, Europe and Asia.
