Enghouse Systems

Enghouse Systems is a Canadian enterprise software solutions provider in remote work, visual computing, and communications. Its growth strategy is based on internal growth and acquisitions. Further, it offers video conferencing solutions to verticals such as telehealth, fintech, and government & military operations through Enghouse Vidyo, a platform developed by Vidyo and acquired by Enghouse Systems in May 2019.

Enghouse Systems acquired Vidyo at just two-thirds of Vidyo's 2019 annual revenue of approximately USD 40 million. The company was valued at approximately USD 1 billion in 2015 when Cisco bid to acquire it. This is likely attributed to Vidyo’s delayed adoption of a cloud-based model in 2016 from its on-premises video conferencing model.

Since starting operations in 2005, Vidyo has pioneered video conferencing by developing real-time video conferencing and collaboration solutions using scalable video coding (SVC). The company’s modern collaborative team-meeting solution, VidyoConnect, provides flexible layouts, from basic browser-based videos to mobile and desktop apps. External parties were able to join VidyoConnect-enabled meetings directly through their browser, and users have the option of 4K or 5K displays.

Despite consumer demand and reported high costs of its system implementation, Vidyo persisted with its on-premises model, straining company earnings in the process. In contrast, Zoom, which entered the cloud space in 2012, posted significantly higher revenue—nearly six-fold—than Vidyo in FY2019. Following the acquisition by Enghouse Systems, Vidyo tools was deployed on-site, as well as via the cloud and hybrid platforms, with a plan to continue to broaden its on-site customer base and serve both on-site and cloud customers.

Enghouse Systems has also acquired companies with the technological capabilities to enhance Vidyo’s offering. In January 2020, it acquired Dialogic, a US-based software company providing cloud-based solutions for real-time communication media, applications, and infrastructure, for USD 52 million. The acquisition was expected to facilitate the transition of network connectivity from hardware to software. This was followed by the acquisition of Momindum SAS, a French enterprise video software platform, in July 2021. Momindum’s video conferencing platform includes features such as in-video hyperlinks, quizzes, and the ability to synchronize video with meeting notes.