Nokia to acquire mobile messaging company OZ: Move expands handset giant’s consumer play

Nokia Corp. once again raised the stakes in its consumer play, acquiring mobile messaging company OZ Communications for an undisclosed amount.
A Montreal-based outfit that claims 220 employees, OZ gained a foothold in the early days of mobile instant messaging and has expanded to social-networking components and consumer-targeted wireless e-mail services. The company has raised roughly $70 million in the past four years and has notched messaging deals with a host of handset manufacturers and popular e-mail service providers; carrier partners include all four tier-one operators in the United States.
OZ’s messaging technology complements Nokia’s existing solutions, the Finnish manufacturer said, and “will provide a complete portfolio of mobile messaging solutions for Series 40 and S60 devices.”
“OZ has been working closely with Nokia since 2003,” said OZ CEO Jim Knapik, adding that “joining forces at this point is a natural extension of our partnership. We are excited about taking OZ’s solutions to consumers worldwide by leveraging Nokia’s devices and distribution scale.”
The move is the latest in a series of high-profile acquisitions for Nokia, which is hoping to deliver a myriad of Internet-based mobile services under the Ovi brand. The company has spent billions in the past two years as it cobbles the umbrella service together, adding players from mobile advertising (Enpocket), music (Loudeye), social networking (Twango) and mapping (Navteq and gate5), among others.
Nokia yesterday announced plans to drop its corporate e-mail offering and sell off its security and appliances business as sharpens its focus on mobile consumers. Shares of Nokia were up 4.5% to $18.40 mid-day Tuesday following news of the OZ acquisition, which is expected to close in the fourth quarter of 2008.