Nokia to Buy Intellisync Wireless E-Mail Service for $430M

Looking to get a leg up in the corporate mobility market, Nokia has signed a $430 million agreement to buy Intellisync Corp., which markets enterprise-scale wireless e-mail and mobile messaging services.

In a bid to expand its portfolio of wireless and mobile messaging services in the enterprise market, Nokia announced Wednesday plans to acquire Intellisync Corp., a platform-independent wireless e-mail company for $430 million.

Nokia and Intellisync signed a definitive acquisition agreement in hopes of expanding Nokias brand in enterprise mobility, according to Nokia officials.

"Enterprises face increasing challenges when it comes to selecting devices, enabling access to e-mail and securing corporate data, while carriers are facing more and more complexity to support these demands," said Mary McDowell, executive vice president and general manager for Nokias Enterprise Solutions business group, in a statement.

Nokia said this acquisition builds on the recent launch of its Business Center software, which provides corporate clients with push e-mail and related business applications.

Nokia will use the Intellisync technology to providing messaging services through range of mobile devices, to any data source, application or network, the company said.

"With a platform-independent and device-agnostic mobile software offering, Intellisync has long been committed to delivering on the mobility needs of wireless carriers and enterprises," said Woodson Hobbs, Intellisync president and chief executive officer in a statement.

"We want to make it simple for our business customers to mobilize their workforces, no matter what their starting point," said McDowell.

"The combination of our portfolio and the addition of the Intellisync team will make Nokia the core mobility provider for businesses of all sizes," she said.

The Intellisync software supports three pillars for effective mobile messaging in the enterprise, Hobbs said during a Wednesday morning conference call.

Intellisync recently combined wireless e-mail and instant messaging to create a unified messaging product for popular mobile devices, posing potential new competition with mobile technology rival Research In Motion, which markets the BlackBerry.

Intellisync also offers security and device management to support IT departments in deploying highly secure enterprise applications and other products.

/zimages/6/28571.gifClick here to read more about Nokias efforts to challenge the BlackBerry.

The ultimate goal is to mobilize the enterprise so that CRM (customer relationship management) applications and other important enterprise applications are deployed quickly and inexpensively, while protecting company investments, Hobbs said.

Intellisync, based in San Jose, Calif., is known for developing wireless mobile platforms for large corporations, mobile carriers, software providers and device manufacturers.

"The expectation is that Intellisync will broaden our customer base and provide technologies and products that help build the foundation for mobilizing applications beyond e-mail," McDowell said.

Under acquisition agreement terms, Nokia will offer stockholders $5.25 for each Intellisync share. The transaction is slated to come to a close in the 2006 first quarter.

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