Mobile Linux supplier Purple Labs announced it has acquired Openwave’s mobile phone software business, which develops and markets its browser and messaging client technologies.
“The Openwave browser and messaging applications have always led the industry, and are today used by every major phone manufacturer in the world,” said Simon Wilkinson, Purple Labs CEO, in a statement. “By acquiring this portfolio and the Openwave client team, Purple Labs becomes a global leader in mobile software, powering both traditional and Linux-based mass-market phones.”
Under the terms of the agreement, Openwave transferred the assets of its client business to Purple Labs on June 27, 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 to Purple Labs for up to six months.
With the current economic climate, wireless operators face shrinking marketing budgets and reduced consumer spending.
Globally, the credit crunch is very much alive, and operators will be tightening their belts into the foreseeable future by putting off capital purchases.
