Paragon's Over-the-Air Mobile Device Synchronization Technology to be Integrated with Phone.com's WAP-Compatible UP.Browser and UP.Link Server Suite
Phone.com,
Inc., (Nasdaq:PHCM) a leading provider of mobile Internet software and services,
today announced it has signed a definitive agreement to acquire Paragon Software
Ltd for approximately $500 million in stock. Headquartered in Newbury, United
Kingdom, Paragon Software is a pioneer of synchronization technology allowing
PC-based personal information to be easily transferred to mobile devices.
Paragon Software's product, FoneSync™, enables users of PC and Internet-based
personal organizers such as Microsoft Outlook™, Lotus Notes™, Excite@Home,
and Yahoo to download and synchronize contact information to over 240 digital
mobile phones from 20 major manufacturers including Alcatel, Ericsson, Nokia,
Panasonic, Philips, Samsung, Sanyo, Siemens, and Sony.
"We have licensed our market-leading UP.Link™ Server Suite to over 50
wireless network operators worldwide," said Alain Rossmann, chairman and
chief executive officer of Phone.com. "With the acquisition of Paragon
Software Ltd we add significant new value to our Wireless
Application Protocol (WAP) platform by leveraging the power of data
synchronization. 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 on-line. The combination of Paragon Software
and Phone.com will rapidly drive this technology to market."
"FoneSync is firmly established as the leader in PC to mobile phone
synchronization. We have marketing agreements in place with numerous partners
including Nokia, Ericsson, AT&T Wireless, Microsoft, and Lotus," said
Colin Calder, chief executive officer of Paragon Software Ltd. "Extending
our technology to WAP-based over-the-air synchronization will revolutionize the
way people use their phones. The synergy with Phone.com's marketing, sales
channels and development organization makes this a powerful combination."
This acquisition is in line with Phone.com's strategy to create the leading
platform for the delivery of Internet services and personal information to
mobile phones. "Paragon's success with FoneSync demonstrates the tremendous
value that synchronization brings to users of mobile phones," said Alan
Black, chief financial officer of Phone.com. "We will further differentiate
our platform by integrating this technology into our UP.Link Server Suite and
UP.Browser, adding a service which drives usage and increases customer loyalty."
In connection with the acquisition, Paragon Software's shareholders will
receive approximately 3.6 million shares of Phone.com common stock, and cash
payments totaling $7.5 million. The stock-for-stock transaction will be
accounted for using purchase accounting and closing is anticipated to occur in
the first calendar quarter of 2000. The acquisition is subject to customary
closing conditions. Integration of the two companies and their products is
expected to occur rapidly. Paragon Software's 63 employees will be integrated
into Phone.com's engineering, marketing, and sales organizations. "Both
Phone.com and Paragon Software are key suppliers to AT&T Wireless,"
said Kendra Vandermeulen senior vice president of product development and
strategy for AT&T Wireless. "We are delighted to see them team to
provide even more value to our customers by integrating their browsing and
synchronization technologies." [ Home | Contact |
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