Feeds

Nokia buys Intellisync

Belt and braces

The Power of One Infographic

Nokia is paying $430m to acquire Intellisync, or $5.25 per share - $100m more than the company's market valuation.

The San Jose-based company offers email and PIM synchronization, and device management software with enterprises and OEM as its primary customers. But over the past two years Intellisync has pushed hard into mobile carriers - providing the backend email infrastructure for Verizon Wireless, and device management for Sprint, amongst around a dozen wins. More recently the company has also begun to offer mobile application and file synchronization for mobile users of corporate CRM applications, for example, and recently launched a subscription-based corporate wireless sync service aimed at SMEs.

In a conference call on Wednesday, Nokia's enterprise executive VP, Mary McDowell, said that Intellisync's sales force and cross-platform support of many different kinds of devices had appealed to the company.

Enterprise and retail, and OEM deals still account for almost 84 per cent of Intellisync's revenue, but the carrier side is the fastest growing part of the business. Intellisync has been on a steady acquisition spree over the past two years, picking up Synchrologic, Spontaneous Technology, BREW developer Tourmaline Networks, PDAapps (formerly VeriChat), Identity Systems and staff from SoftVision.

Two-thirds of Intellisync's revenue is derived from licensing, the rest from services. Intellisync grossed $59.49m in revenue for the most recent full fiscal year ending July 2005, although with a hefty channel to support - sales and marketing expenses reached $46.3m and R&D expenses cost the company $24.5m - the company reported a net loss of $19.5m.

Commenting on the deal, Kent Thexton, CEO and president of carrier email provider Seven, said Nokia's acquisition validated the booming mobile email market.

"There's lots of room in the marketplace," he told us today. "In a year we've gone from ten to seventy five carrier customers for our white label email service - when customers go into a store to buy a phone they expect to see push e-mail on the device. I think we'll see less competition for the white label positioning."

Carriers typically take a Seven package and pre-load it on the phone, such as Cingular with its Xpress Mail. Thexton cited Sybase's acquisition of Extended Systems as evidence of a maturing and growing market.

For a long time Nokia was criticised for its lethargic response to RIM, but under McDowell's stewardship the company has been wheeling and dealing: inking an agreement with Microsoft to support ActiveSync, rolling out its own business email platform, and finally delivering on BlackBerry support on its own phones. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.