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Will The Combination of Vidyo and Enghouse Systems Up The Ante for Live Video Customer Experience Interactions?

By Arti Loftus May 20, 2019

Enghouse Systems last week announced they have acquired Vidyo for a price $20 million dollars lower than Vidyo’s annual revenue.

At a purchase price of $40 million, some analysts see this as a steal, and a deal that makes sense as it puts the power of Vidyo’s enterprise-class video software into Enghouse’s growing interactive portfolio which is focused on delivering modern, online customer experiences.

Vidyo has long been admired for their platform that supports visual communications across diverse end-points, networks of varying bandwidth and geographically dispersed locations.

According to a press release, “the company's infrastructure software platform leverages patented video routing, management and interoperability technologies to deliver best-in-class video quality, reliability, scalability and security. Delivered in the cloud, on-premise or as a hybrid solution, Vidyo enables customers to more efficiently collaborate, interact and engage.”

Around for over a decade, Vidyo has over 100 patents which may certainly have been part of the appeal for Enghouse, which has been actively buying and consolidating businesses to complement their organic growth.

Their stated strategy is to build a more diverse enterprise software company through strategic acquisitions and managed growth within its business sectors: Contact Center, Networks (OSS/BSS) and Transportation/Public Safety. Enghouse shares are listed on the Toronto Stock Exchange (TSX:ENGH).

Vidyo is one of the few enterprise video companies supporting HIPAA compliant healthcare systems, which could be another plus for Enghouse as they continue to forge ahead with a strongly vertical industry-oriented approach. Growth in the connected care market continues to climb, and having compliant network and application infrastructure is a significant benefit to large hospitals, medical centers, clinics and recently emerging direct care businesses.

Vidyo also offers a broad API framework that allows enterprise developers to rapidly embed video communications into third-party applications, workflows and a broad range of devices. The company focuses on select vertical markets, particularly healthcare and financial institutions, where video quality, reliability and end-market specialization are essential requirements.

Vidyo is deployed in approximately 400 hospital networks and in approximately 120 financial institutions. Vidyo also provides visual communications within the broader enterprise collaboration market and in emerging public safety, field services and IoT use cases. The company's platform and applications are used by over 1,700 customers, including some of the world's leading brands within Vidyo's focus markets.

"Vidyo's suite of real-time video collaboration solutions extends our enterprise product offering into media and content and is complementary with Enghouse's portfolio across all our business sectors," said Steve Sadler, Chairman & CEO of Enghouse. "We are very pleased to welcome Vidyo's customers, employees and partners to the Enghouse organization."

"We're excited to join Enghouse because of the great product fit and our shared vision" said Michael Patsalos-Fox, Chairman and CEO of Vidyo. "Enghouse gives us the opportunity to amplify our product innovation, service, and support making this a great transaction for Vidyo's customers and partners."


Arti Loftus is an experienced Information Technology specialist with a demonstrated history of working in the research, writing, and editing industry with many published articles under her belt.

Edited by Maurice Nagle

Special Correspondent

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