More
    HomeInsightsFolloWap sold as OZ adds vc funding

    FolloWap sold as OZ adds vc funding

    -

    American telecoms clearing house NeuStar has bought IP messaging company FolloWap for $139 in cash. FolloWap will be added to NeuStar’s range of services, which includes its SIP-IX suite and telephone number and routing database services.

    NeuStar thinks FolloWap will make about $25 million revenue next year, and the company aims to double that in 2008.
    Mark Foster, cto of NeuStar, said that instant messaging is a natural fit with the company’s MMS-IX and other clearing services.
    But he didn’t think that having one of the solutions providers on its books would affect its neutrality in the clearing market.
    “FolloWap’s core functionality, the ability to provide interoperability between operators and into ISPs, is in line with the strategic goals and interests of NeuStar,” Foster said.
    “Their software is just one of several solutions that operators use,” he added. Reza Jafari, SVP of Strategic Business Development, said FolloWap’s business was set to change dramatically, as it moved to a more hosted and transaction based business model – hence the predicted boost in revenues.
    Meanwhile, rival IM vendor OZ Communications has lined up second round vc funding of $34 million.
    Skuli Mogensen, ceo, said that the funding would be used to go after the rapidly growing converged consumer messaging market.