SEATTLE—NetMotion Wireless Inc. said it plans to merge with Padcom Inc. and continue providing mobile virtual private networks, becoming what the companies call “the largest dedicated provider of mobile VPN solutions.”
Interestingly, the merger also settles a patent lawsuit between the two companies.
The combined company will be based in Seattle, where NetMotion is based, and will continue under the NetMotion Wireless name. The company will maintain offices in Bethlehem, Pa., where Padcom is based. Bob Hunsberger, chief executive officer of NetMotion Wireless, will lead the new company; Gordon Smith, former chairman of the board of Padcom, will serve as chairman of the combined company.
The company will continue to support customers that use technology from either of the companies, but its new products will be based on NetMotion’s Mobility XE product while integrating some features from Padcom’s TotalRoam product.
“The mobile VPN market is accelerating, due to factors such as the broad availability of high-speed wireless networks and the release of devices running Windows Mobile 5.0,” said Smith.
Hunsberger said that the merger “is about two companies coming together to seize the opportunity in a hot market space.”
