|
Purple Labs: Linux Vendor Completes $32 Million Acquisition of US
Mobile Technology Leader; Purple Labs acquires mobile browser business
from Openwave
(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:03072008
Chambery, France -- Purple Labs, a French developer of Linux-based
mobile software, today announced that it has completed its acquisition
of the mobile client software business of California-based Openwave
Systems, in an asset sale valued at more than $32 million. The browser
and messaging products acquired in the deal are among the best-selling
mobile applications in the world, having already shipped in more than
1.5 billion mobile phones.
Following the acquisition, Purple Labs now supplies mobile browser
software to all of the top 5 phone manufacturers, which together
produce over 80% of the world's mobile phones.
Under the terms of the deal, Purple Labs has acquired the products,
software code, patents and customer contracts of the Openwave business.
For the quarter ending in March, Openwave had reported $11.1 million in
revenues from these customer contracts, including software license fees
and related engineering services.
Purple Labs Commits to Further Investment in Browser and Related
Technologies In a letter sent today to mobile phone manufacturers,
Simon Wilkinson, Purple Labs CEO, outlined the company's plan for the
newly acquired business.
"Purple Labs will continue to maintain the existing products, and
invest in the next-generation Surfer browser and other advanced mobile
Internet technologies," said Wilkinson. "In addition to the
California-based development team we acquired from Openwave, we already
have 75 engineers at our development centre in Chambery, France and
plan to grow this team aggressively. Our aim is to extend the industry
leadership established so well by Openwave."
"Further, we plan to reuse many of the Openwave technologies in our
Purple Labs Linux platform. We are focused exclusively on the
requirements of LiMo Foundation members such as Vodafone and Orange -
and believe that this will ultimately create new market opportunities
for our manufacturer customers."
Gordon Tsang Appointed GM of the Acquired Business Purple Labs also
informed customers today that it has appointed Gordon Tsang to be
general manager for the browser/messaging business unit. Effective
immediately, Tsang now heads a global sales and engineering support
team with offices in California, Beijing, Hong Kong, Seoul, Tokyo and
Manchester, England. About 80 employees are expected to move from
Openwave to Purple Labs.
Tsang is unusually well prepared to assume his new general manager
role, having been employed in the same capacity at Openwave before
joining Purple Labs earlier this year as senior vice president of sales
in Asia.
"Gordon is a proven leader, and his strong track record while at
Openwave ensures a smooth transition for the customers and employees
now moving to Purple Labs," said Simon Wilkinson, Purple Labs CEO. "We
are committed to making this as seamless as possible for everyone
involved."
Effectively a Management Buy-Out Tsang is, in fact, one of several
ex-Openwave executives now with Purple Labs.
The messaging technologies in the newly acquired portfolio were
originally developed by a UK start-up called Magic4, where Wilkinson
was founder and CEO. Magic4 rapidly became the global leader in
messaging before being acquired by Openwave in 2004, at which time
Wilkinson, Tsang and other Magic4 executives moved to leadership roles
at Openwave. Wilkinson reunited the team at Purple Labs after taking
the CEO role there in October of last year.
"The opportunity to acquire the Openwave business was unexpected, but
fits very well with the mobile Linux strategy that Purple Labs was
already pursuing," said Wilkinson. "And given that several of us
previously led this Openwave business, our investors are confident that
we can integrate the operations effectively and deliver the financial
return they require."
Based in Chambery, France, Purple Labs is funded by three European
venture capital firms: Sofinnova Partners, Earlybird Venture Capital,
and Partners Group.
Financial Terms Under the terms of the definitive agreement, Openwave
transferred assets of its client software business to Purple Labs on
June 27, 2008 in exchange for $30 million in cash, an additional $2
million if certain conditions are met, and warrants to purchase 2% of
Purple Labs common stock. Additionally, Openwave will provide
transition services for up to six months, and bear the first $2 million
of such expenses, to smoothly transfer the client business to Purple
Labs.
Advisors to Purple Labs Cooley Godward Kronish represented Purple Labs
in its agreement with Openwave Systems.
Ernst & Young and Eversheds acted as financial and legal advisors to
Purple Labs.
About Purple Labs
Purple Labs is the only independent software vendor with a complete
Linux solution for mass-market 3G phones. The Purple Labs Linux Suite
enables phone manufacturers to replace their legacy operating systems
with a flexible and scalable Linux platform, accelerating development
of feature-rich 3G phones while reducing investment. Building on its
European presence in France and the UK, Purple Labs recently expanded
into Asia, with new offices in Beijing, China and Seoul, South Korea.
CONTACT: Kate Hamilton, Public Relations, Purple Labs S.A
Tel: +44 (0)1252 519 832
e-mail: Kate.Hamilton@purplelabs.com
WWW: http://www.purplelabs.com
((M2 Communications Ltd disclaims all liability for information
provided within M2 PressWIRE. Data supplied by named party/parties.
Further information on M2 PressWIRE can be obtained at
http://www.presswire.net on the world wide web. Inquiries to
info@m2.com)).
Copyright ? 2008 M2 Communications Ltd.
[ Back To SIP Trunking Community's Homepage ]
|
