Santera Systems

About Santera Systems

Santera Systems emerged in 1998, established by individuals with prior success at next-generation companies including Cascade, Shasta, Ardent, and Arris. The Plano, Texas-based firm positioned itself in the telecommunications sector, specializing in the manufacturing and provision of network switching products for voice and data transmission. The company's core focus was on developing carrier-class, next-generation switches that facilitated the migration from circuit to packet networks.

Santera Systems' product portfolio was designed to address the evolving needs of telecommunications service providers. Its primary offerings included solutions for enhanced voice switching, integrated voice and data switching, and voice over broadband. These products aimed to provide significant capital and operational cost efficiencies, estimated between 50 to 70 percent for their clients. The company's technology enabled true circuit-to-packet migration, a critical transition for the telecommunications industry at the time.

A significant milestone in the company's history occurred in April 2003, when it announced a definitive agreement to combine its next-generation switching business with Tekelec. This transaction resulted in the formation of a new, majority-owned subsidiary of Tekelec, named "Santera, a Tekelec company," with David Heard, Santera's CEO, becoming president of the new entity. The deal was structured with Tekelec contributing its packet telephony business and $28 million in cash, while Santera's investors contributed its assets plus an additional $12 million. This strategic combination aimed to leverage the strengths of both companies in packet telephony, creating a more robust product portfolio and greater market reach. Ultimately, Tekelec completed the full acquisition of Santera Systems.