Looking to add further value to its UP.Link Server Internet gateway, Phone.com Inc. said it will acquire Paragon Software Ltd. for about $500 million in stock.
Paragon develops synchronization technology called FoneSync that allows desktop computers and mobile devices to share information. Phone.com said it will integrate the technology to make it easier for Internet phones to interact with data stored on personal computers.
“Mobile phone users are demanding touch-of-a-button information management between the mobile phone, PC applications and Internet information services whether or not they are online,” said Alain Rossmann, chairman and chief executive officer of Phone.com. “The combination of Paragon Software and Phone.com will rapidly drive this technology to market.”
Under the agreement, Paragon shareholders will get about 3.6 million shares of Phone.com stock, as well as cash payments of about $7.5 million, Phone.com said. The company anticipates closing the transaction by the end of the first quarter. This is Phone.com’s second acquisition since going public. It first bought Wireless Application Protocol server manufacturer APiON, located in Northern Ireland.
Paragon is located in Newbury, United Kingdom.
Also overseas, Phone.com announced Mobile Information Dynamics has licensed its UP.Link Server WAP Gateway to offer WAP- based services on digital networks in Japan. The service allows subscribers to browse horse racing related information on phones equipped with WAP browser technology.
MID is a mobile information service provider financed by Itochu Corp., Matsushita Communications Industrial Co. Ltd., NTT DoCoMo INc. and others.
In the United States, the company said it licensed Tibco Software Inc.’s TIB/ActiveEnterprise e-business software into its MyPhone platform.
TIB/ActiveEnterprise software powers such Internet portals as Yahoo!, AltaVista, CBS SportsLine and Lycos.
