Aether Systems, Inc. (Nasdaq: AETH), a leading provider of wireless data systems and services, today announced the acquisition of NetSearch LLC, a leading provider of wireless solutions for companies selling products and services via the Internet. The purchase price consists of $25 million in cash at closing plus up to an additional $65 million payable over 13 months if NetSearch meets specified revenue targets.
This acquisition marks Aether's latest move following its $1.6 billion secondary offering to continue executing its business plan of entering new markets through acquisition and partnership. Based in Scottsdale, Ariz., NetSearch develops and markets a high-end wireless notification and response system designed to increase sales productivity for companies engaged in Internet commerce by bridging the gap between website consumers and retailers.
The NetSearch Merchant Notification System(tm) (MNS) enables companies to quickly and wirelessly receive and respond to on-line inquiries via handheld devices. The system includes a comprehensive lead tracking and accountability system, providing clients a complete suite of tools to dramatically improve on-line customer service and sales.
NetSearch solutions have been widely adopted in the automotive market and are being quickly embraced in other industries including real estate and insurance. In the automotive sector, clients and partners include manufacturers Lexus, Toyota and Lincoln-Mercury, third-party lead provider STONEAGE.com and many of the top 100 dealer groups including Sonic Automotive, Brandow Automotive Group and Ed Morse Automotive Group.
"NetSearch and its high-end wireless application technologies will strengthen Aether's growing suite of wireless products and services and further improve our ability to meet the demands of today's mobile workforce," said Aether Chairman and CEO David Oros. "The company brings an outstanding list of top-tier clients and we look forward to integrating NetSearch solutions into the Aether framework."
Currently, NetSearch enables the Merchant Notification System using RIM devices operating over the BellSouth network. As a part of Aether, NetSearch will gain the ability to develop solutions on multiple networks and devices by running its applications through the Aether Intelligent Messaging (AIM) platform. AIM supports the most widely-used wireless data networks in the United States, known as CDPD, Mobitex and ARDIS, as well as circuit-switched network protocols, including GSM and CDMA. As a result, end users can choose the devices they prefer, including Palm, Windows CE and the new Pocket PC platform and other personal organizers, WAP (wireless application protocol) phones and pagers.
In addition, Aether brings NetSearch the ability to bundle a variety of wireless e-mail and web solutions. The end result is that NetSearch will be able to provide more options for end-user devices, enhanced network coverage and additional tools to satisfy all of a client's wireless data needs.
"By becoming a part of Aether, NetSearch will be able to offer the Merchant Notification System independent of platform or network so anyone, anywhere can access its features and functionality," said NetSearch President and CEO Gus Esposito. "This acquisition will accelerate our growth and positioning in the automotive marketplace and other markets including real estate and insurance."
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