Visto snaps up mobile e-mail technology from Motorola: Price not disclosed in spin-off of Good Technologies

Motorola Inc. will spin off its enterprise-focused mobile e-mail business just two years after entering the space.
The troubled handset maker said it will sell Good Technology to Visto, a Silicon Valley-based mobile e-mail player, for an undisclosed sum. Motorola acquired Good in late 2006 in a cash deal rumored to be worth $500 million – far more than Visto likely paid – in an attempt to compete with Research In Motion Ltd., which has long dominated the field.
Visto’s carrier partners include AT&T Mobility, Sprint Nextel Corp. and T-Mobile International, but its most important wins have been in the courtroom – and among venture capital firms. The firm secured licensing deals with Microsoft Inc. and others after winning a key patent-infringement case against rival Seven Networks in 2006 and has pocketed at least $300 million in VC since its 1996 founding.
Visto said it aims to integrate Good’s solution with its own technology and build on the business’s traction among U.S. companies.
“Good Technology specializes in offering wireless messaging, mobile VPN (virtual private network) data access, device management and handheld security for enterprise customers worldwide,” Visto said in a prepared statement. “The addition of Good’s extensive service offerings in the U.S., Europe and Asia will enable Visto to provide its government and enterprise customers with the benefits of a broader range of solutions and best-in-class secure mobile offerings.”
Motorola’s dumping of Good comes on the heels of Nokia Corp.’s move to ditch Intellisync, a corporate-focused mobile e-mail business it acquired three years ago for $430 million. Nokia instead acquired OZ Communications and is targeting consumers and low-end business users with wireless e-mail as part of its Ovi service.
Shares of Motorola Inc. dipped slightly following the announcement, losing 11 cents, or 3%, to $3.52 per share.