AT&T announces that it has agreed, through one of its subsidiaries, to acquire privately held Interwise. AT&T will pay approximately $121 million in cash for the company. The transaction, which is expected to close in the fourth quarter, strategically aligns Interwise’s innovative IP-based conferencing and collaboration solution with AT&T’s enterprise networking, communications and collaboration services, global MPLS-based IP network and its industry-leading conferencing portfolio of services.

Following the acquisition, the company will operate as a business unit within AT&T Global Business Services, which serves the largest enterprises around the world and is led by Group President Ronald E. Spears. AT&T expects to retain Interwise’s management team and its domestic and international operations, including its R&D center in Israel.

“The addition of Interwise’s technology and expertise in conferencing to AT&T’s global reach, networking and conferencing capabilities will broaden and enhance the range of solutions for our enterprise customers who are making the transition to IP networking,” said Spears.

“Our enhanced capabilities will enable businesses around the globe to use conferencing as more than just a substitute for face-to-face meetings. The IP-collaboration solutions offered by Interwise will help customers increase the impact of their efforts by allowing employees to work on joint projects simultaneously with colleagues and partners, share information regardless of their location or device and make better business decisions,” Spears said.

With the acquisition, AT&T and Interwise will be able to more quickly develop and bring to market capabilities to address the evolving collaboration and communications needs of businesses around the world.