Nokia Corp. said it will divest a part of its multimedia messaging service technology to wireless services vendor 724 Solutions, a move 724 said will help it reach profitability by the fourth quarter of this year. Terms of the deal were not disclosed.
Nokia said the sale of its Multimedia Application Gateway, which is part of its MMS Center offering, will better support its network operator customers and will allow Nokia to refocus on its core businesses.
“Our goal is to make sure we continue to offer the market’s most competitive MMS infrastructure solution to our present and future mobile operator customers. Through the expertise 724 Solutions has in the service platform business, we will continue to offer a product that represents the state-of-the-art technology and know-how on the market,” said Bo Lonnqvist, general manager of Nokia Networks’ messaging product line. “Divesting Nokia Multimedia Application Gateway, an element of our MMS solution, to 724 Solutions will allow us to further develop and expand messaging solutions that fall into Nokia’s core competence, thereby giving more added value to our operator customers also in the long term.”
724 said it will manage the MAG’s development and support in its Toronto-based development center, and it will add the product to its X-treme Mobility Suite for sale to wireless carriers. Nokia will continue to sell the product through its own distribution channels. Nokia said the majority of its 70 MMSC deployments include the MAG.
“The acquisition of the (Multimedia Application Gateway) product and the OEM agreement with Nokia are expected to be accretive to our profit plan and will be key elements in driving 724 Solutions to profitability in the fourth quarter of 2004,” said Glenn Barrett, 724’s chief financial officer. “We are excited about the expanded opportunity 724 Solutions can now pursue in delivering revenue-driving premium content data services to mobile network operators.”
