DUBLIN, Calif.: Sybase Inc., a provider of enterprise infrastructure and
mobile software, has announced that it has signed a definitive agreement to
acquire Mobile 365, the global leader in mobile messaging and content delivery,
in an all cash transaction.
The purchase price set forth in the definitive agreement is $425 million,
which is subject to adjustment based on Mobile 365's working capital as of the
closing date.
Net of acquired cash, the transaction is valued at approximately $400
million. The transaction is expected to close in the fourth quarter of 2006,
subject to regulatory approvals and other specified closing conditions.
Headquartered in Chantilly, Virginia, Mobile 365 is privately held and backed
by leading venture capital firms including Draper Fisher Jurvetson, Draper
Atlantic Venture, 3i Technology Partners, Institutional Venture Partners, and
Mayfield.
For its fiscal year ended March 31, 2006, Mobile 365 generated approximately
$90 million in revenue. Sybase expects the acquisition to be accretive to pro
forma earnings within 12 months following the close of the transaction.
“This acquisition extends our Unwired Enterprise vision with the addition
of two new enterprise channels - wireless carriers and content providers -
making Sybase the leading mobile enterprise software and services provider in
the world,” said John Chen, Sybase chairman, CEO and president.
“The mobile messaging market in the US alone is expected to grow to $7.5
billion by 2008. Getting closer to this exploding mobile market through carriers
is a key extension of our Unwired Enterprise strategy. Mobile 365 brings
unparalleled breadth and depth of carrier relationships and the largest mobile
messaging and content delivery platform, solidly positioning Sybase between
carriers, global brands and mobile content,” he added.
“Given Sybase's leadership in enterprise mobility, this acquisition is a
perfect fit. With Mobile 365's technology, Sybase can now deliver any mobile
message or application to any handset-anytime, anywhere,” said Mike Daniels,
Mobile 365 executive chairman. “We are pleased to provide Sybase an extensive
carrier channel with connections into approximately 700 operators, a portfolio
of leading financial, media and entertainment customers, and new opportunities
to leverage its AvantGo and mFolio services as well as its data analytics
capabilities to meet customer demand for more robust analytics of wireless data
traffic.”
Following the closing of the transaction, Mobile 365 will operate as Sybase
Mobile 365, a wholly-owned subsidiary. Marty Beard, Sybase's senior vice
president of corporate development and marketing, who will be named president of
Sybase Mobile 365, will lead the new subsidiary.
“Through our combined footprint, products, operator-grade network, and
content and application delivery infrastructure, the acquisition of Mobile 365
extends our reach into mobile enterprise customers worldwide by augmenting our
current direct and indirect channels with an extensive carrier channel and
robust ASP delivery platform,” said Beard.
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