Extended Systems to Buy ViaFone

Extended Systems will integrate its XTNDConnect data synchronization software with ViaFone's OneBridge Mobility Platform.

Wireless synchronization and management software company Extended Systems Inc. this week announced plans to buy enterprise mobile application company ViaFone Inc.

Extended Systems plans to integrate its XTNDConnect data synchronization software with ViaFones OneBridge Mobility Platform, which provides mobile applications for various vertical markets such as the transportation and pharmaceutical industries.

Combining the two companies products will mean that Extended Systems will offer both real-time and offline capabilities for enterprise applications.

"If you look at what our customers are going to need going forward, they want to have one vendor they can look to, to provide the platform they need going forward," said Steve Simpson, president and CEO of Extended Systems, in Boise, Idaho.

Under the terms of the deal, all outstanding shares of ViaFone will be exchanged for 3 million shares of Extended Systems common stock, which values ViaFone at about $11.4 million, officials said. ViaFone CEO Russ McMeekin plans to join the Extended Systems board of directors. The deal should close in July or August, officials said.

The company plans to maintain ViaFones offices in Toronto and Brisbane, Calif.

Just a year ago, Extended Systems was planning to be acquired itself, by handheld computer company Palm Inc. But the deal fell through when it became clear that Palms financial situation was shaky.

"When their financial performance turned way below what their expectations were, we were concerned that they werent in the position to effectively integrate us into the company, seeing as they were having trouble keeping their handheld business going, " Simpson said.