SpyglassŪ Signs Definitive Agreement to Acquire Navitel Communications; Acquisition Will Significantly Expand Existing Windows CE Practice

Navitel Working Directly with Microsoft to Develop Internet Telephony Technology Utilizing Microsoft Windows CE Operating System

Naperville, Ill. -- Thursday, April 8, 1999 - In a strategic move that strengthens its existing Windows CE-based Practice, Spyglass Inc. (NASDAQ: SPYG) announced today it has signed a definitive agreement to acquire privately-held Navitel Communications Inc. Based in Menlo Park, Calif., Navitel is the developer of a Microsoft Windows CE-based software and applications platform for Internet enabled telephones.

Under the terms of the agreement, Spyglass will issue 1,250,000 shares to Navitel stockholders and option holders, resulting in a transaction valued on the date the definitive agreement was reached at approximately $11.3 million. The transaction will be accounted for as a pooling of interests and is expected to be completed within 15 days.

Navitel has worked closely with Microsoft developing Windows CE-based software for information appliances. Navitel developed the software for Microsoft's "Hermes" Web-enabled telephone platform powered by Windows CE that was recently previewed at CeBIT '99 in Hanover, Germany. Acer Inc., Daewoo Telcom Ltd., Panasonic, Philips and Vestel's information appliances division demonstrated the prototype phones which combined enhanced data capabilities such as Internet access and e-mail with traditional phone services such as voice messaging and caller ID.

"Navitel was a key contributor in the development of our "Hermes" project, a Windows CE-based platform for Web-enabled telephones," said Derek Graham, program manager, Information Appliances

Division, Microsoft Corp. "Now, Navitel will accelerate the ability of Spyglass to provide solutions to those customers seeking to use the Windows CE platform in their Internet devices. This acquisition makes Spyglass one of the key development associates of Windows CE."

According to Spyglass President and CEO Doug Colbeth, "Navitel's extensive experience in providing Windows CE-based solutions for devices is a natural extension of Spyglass' current solutions practice for Windows CE. With the Navitel acquisition, Spyglass will gain significant expertise in developing Internet enabling software and applications running on the Windows CE platform. This will enhance our ability to leverage the success of Windows CE as one of the leading Internet device platforms. In addition, this deal will help facilitate the development and integration services that Spyglass will provide to Microsoft under the separately announced $20 million strategic Internet solution agreements with Microsoft."

"Spyglass continues to strengthen its ability to leverage key Internet-enabling technologies and Internet device platforms to help our customers deliver Web-enabled products and services," Colbeth said. "The Navitel acquisition will complete another milestone in our strategy of offering comprehensive multi-platform solutions to our customers and OEM's which plan to utilize the Windows CE platform in their devices."


[ Home | Contact | MobiChat | Experts database | Let's do it ]

Comments to the content of this page can be posted on the MobiChat discussion group

logo.gif (1569 bytes)