O2, Telefonica’s mobile arm, is all set to acquire Jajah, the popular Israeli VoIP company for $200 million according to The Marker, an Israeli financial news site.
However, the acquisition, which is rumoured to go down this week, has not been confirmed by the either of the companies.
If the rumours are to be believed, then O2 has emerged as the winner of the bidding war that included big players like Microsoft and Cisco Systems.
Jajah is a Voice over IP service provider that allows its users to make low-cost international calls to more than 125 countries with the ability to terminate or transfer calls from the internet to the local telephone connection.
The company boasts of having 25 million users the world over with its one billionth call having been made in June this year.
It had recently signed an agreement with Twitter, the micro blogging giant, to allow its members to make calls directly to each other within the website.
The VoIP start-up had recently concluded two separate deals with Yahoo and Microsoft to allow them to serve their users with internet calling.
Interestingly, if the acquisition goes through, O2 will get hold of proprietary VoIP technology at a much cheaper price as Jajah’s competitors; these include VoIP giant Skype which is valued at $2.75 billion and Vonage, which is valued at $235 million.
Jahah's third party beta offering was rolled out in September and many analysts believe that telecoms companies across the world are increasing the realising the potential of the VoIP market and are rushing forward to tap it.