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Dialogic Communications looks for sale or IPO

Working with Morgan Keegan

07-07-2005 12:17 PM — Franklin-based Dialogic Communications, a provider of emergency notification services to government and business clients, is interested in finding a suitable publicly traded buyer or conducting an initial public offering to grow its business.

NashvillePost.com understands that Dialogic has had talks with Dallas-based InterVoice, which specializes in voice automation and interactive speech software and generates annual revenue of $185 million. Gene Kirby, Dialogic’s chairman and CEO, told NashvillePost.com Thursday that it has been the company’s goal for some time to either go public or seek out a public acquirer. He declined comment on the specifics of ongoing talks citing non-disclosure policies. He said, however, that “InterVoice (INTV) is considered in our space.”

“We have 110 stockholders and there is no controlling stockholder,” Kirbysaid. He added that Dialogic has been entertaining interested parties for about a year and for those purposes retained investment bank Morgan Keegan of Memphis. “I’d be interested in talking to anybody who’d make some sense,” Kirby said.

Since 1981, Dialogic has been setting up and maintaining emergency communications systems for large organizations, especially in the financial services industry. But until the terrorist attacks of 2001 in New York City the firm had stayed largely below the radar. “Then, suddenly, our type ofproducts got some attention,” Kirby said. “That leads to interest fromventure capitalists, corporations and other investors.”

Following the explosions Thursday morning in London's subway, Dialogicactivated its hosting equipment for some of its customers in New York, Kirby said. During the 2003 blackouts there, the company in less than one day made roughly 100,000 automated, tailored notification calls for a variety of public and private entities, including major corporations in New York and others in Michigan and Ohio.

Dialogic is located at 730 Cool Springs Boulevard in Franklin.

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