Still reeling from last week’s lawsuit that saw Freedom Wireless Inc. win a $128 million decision, Boston Communications Group Inc. shook up its front office and announced the acquisition of an Internet filtering software developer.
BCGI said it will spend $5.8 million to acquire California-based developer PureSight Inc., which produces filtering software for Internet service providers. The company plans to integrate PureSight’s technology into its own Mobile Guardian, a service that allows parents to limit access to adult content and control voice use on their children’s mobile phones.
BCGI also announced a corporate reorganization, appointing Fritz von Mering to the newly created position of chief operating officer. Von Mering will oversee four new business units, which the company unveiled Thursday as BCGI payment, access management, real-time billing, and Voyager billing.
The move is an effort to expand the company’s offerings beyond its prepaid business, which accounted for 90 percent of its total revenues in the first quarter of this year. Last week, an eight-person jury awarded Freedom Wireless $128 million following a three-month trial against BCGI, Cingular Wireless L.L.C., AT&T Wireless Services Inc., CMT Partners and Western Wireless.
The jury found the defendants violated a Freedom Wireless patent covering the technology and processes used to provide prepaid cellular service. The news sent BCGI’s stock price tumbling, but BCGI said it plans to appeal the decision.
Meanwhile, Cingular filed documents with the Securities and Exchange Commission indicating BCGI will indemnify Cingular and its AWS unit regarding the lawsuit. But BCGI has indicated it may need to seek bankruptcy protection in the wake of the ruling, which may leave Cingular liable for the judgment.
“However, if BCGI does not have adequate financial resources to fully pay any judgment against (Cingular) and AT&T Wireless, (Cingular) would be required to pay all or part of the judgment,” according to the filing.
BCGI stock continued to slide this week, trading at $1.48 on the Nasdaq mid-day Friday.
