Enterprise software developer Enghouse Systems has acquired US-based video conferencing tool developer Vidyo for approximately $40m, enabling healthcare consortium Kaiser Permanente and networking equipment provider Juniper Networks to exit.
Founded in 2005, Vidyo has created a software platform that allows companies to conduct real-time, video chats in high resolution from any device in a wide range of locations. It also enables developers to embed video communication capabilities into third-party applications and devices.
The company has more than 1,700 customers, across the education, governmental, financial, field services and healthcare sectors. The acquisition is intended to expand Enghouse’s enterprise product range into areas such as media and content.
Vidyo raised $9.3m in equity funding in October 2017 before adding $12m in July 2018, according to regulatory filings. Kaiser Permanente’s corporate venturing arm, Kaiser Permanente Ventures, contributed $10m to a $15m round for Vidyo in 2015 that was filled out by undisclosed existing backers.
Juniper Network’s Junos Innovation Fund had backed a $20m round for the company in 2014, investing alongside Menlo Ventures, Rho Ventures, Sevin Rosen Funds, Saints Capital, Four Rivers Group, ORR Ventures, Triangle Peak Partners and QuestMark Partners.
Vidyo had previously secured $17m in a round led by Triangle Peak Partners with participation from Juniper Networks, QuestMark, Menlo Ventures, Rho Ventures, Star Ventures and Four Rivers Group the year before.
QuestMark had already led the company’s $22.5m series D round in 2011, which was extended through a $2m investment from Juniper the following year. The round also featured Star Ventures, Rho Ventures, Menlo Ventures and Four Rivers, and it increased the company’s total funding to $99.5m.