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BroadSoft Inc. has acquired longtime rival Sylantro Systems Corp. in a deal that combines two heavily funded VoIP companies and tech-bubble survivors.

Terms of the deal were not disclosed. The announcement from BroadSoft on Monday confirms recent rumors about the two companies merging, and shows that consolidation in the face of economic downturn may have reached the VoIP sector.

"The economy is a factor," said BroadSoft Chief Executive Michael Tessler. "The macroeconomic conditions help consolidation... There could be more in 2009," he said, referring to the possibility of more mergers among start-ups making the enabling technology for VoIP services.

Both companies were founded in 1998, and both make software platforms to deliver VoIP services. The two have reaped heavy venture backing from large syndicates.

Based in Gaithersburg, Md., BroadSoft has raised about $72 million from Bessemer Venture Partners, Charles River Ventures, Columbia Capital, Comdisco Ventures, Crescendo Ventures, Grotech Ventures, RRE Ventures and Meritech Capital Partners, VentureWire records show.

Sylantro, based in Campbell, Calif., has raised some $113 million from Mayfield Fund, Vanguard Venture Partners, Accel Partners, Argo Global Capital, Hook Partners, JP Morgan Partners, Bowman Capital, Azure Capital Partners, VLG Investments and Summerhill Venture Partners.

Attempts to reach Sylantro's main investors - including Summerhill, Vanguard and Mayfield -- were not immediately successful on Monday. Attempts to reach Sylantro were also not successful.

While Sylantro raised more VC backing than BroadSoft, the latter company "outperformed and outexecuted" its rival consistently, Tessler said.

"We've been more successful for a number of years," he said. Company materials said BroadSoft has seen a tenfold growth in revenues in the past five years, and in that time increased its workforce to nearly 300 from 84. The company did not elaborate on its revenue.

It was unknown Monday how many employees Sylantro had. Most have been offered jobs at BroadSoft, but Sylantro Chief Executive Marco Limena will not remain, Tessler said.

Among the main benefits of the deal for BroadSoft is the inheritance of Sylantro's customer list, which includes tier-1 wireless carriers like AT&T Corp., Qwest Communications International Inc. and China Telecom.

BroadSoft's customers include Sprint Nextel Corp., Singapore Telecommunications Ltd., Korea Telecom Corp. and Verizon Communications Inc.

BroadSoft will work to merge the two company's VoIP platforms, and in the meantime will offer Sylantro's customers the same platform -- Sylantro's Synergy platform -- that they have been using.

Tessler declined to give a valuation for BroadSoft.

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