GenBand acquired Fremont, Calif.-based BayPackets in an equity deal of undisclosed value that positions the combined company to contend for billions of dollars of worldwide IMS (IP Multimedia Subsystem) network business.

GenBand looks at the IMS market as having three layers: transport, session control, and applications & services. Service providers are pretty much set with their session control layers, in GenBand’s view, relying on suppliers such as Alcatel and Siemens. The acquisition of BayPackets, GenBand believes, makes it one of the very few companies that can address the other two layers, which GenBand says remain largely unpopulated.

GenBand’s product portfolio of gateways, gateway controllers and application servers occupies the transport layer, while BayPackets’ products provide a toolset that allows service providers to create applications and services. The combination will aim at providing VoIP, fixed mobile convergence, and multimedia solutions.

From a customer standpoint, the two complement each other. GenBand has focused largely on North American cable operators, while BayPackets has a worldwide list of mostly telephony and wireless customers.

GenBand management will continue to run the company, with the addition of BayPackets founder Sanjeev Chawla serving as the combination’s chief technology officer.