Openwave Systems Inc. (Nasdaq: OPWV) has sold its mobile phone software business to Purple Labs, a Chambery, France-based provider of embedded Linux solutions for the wireless market. No financial terms were disclosed. Purple Labs last year raised $14.5 million in Series A funding from Sofinnova Partners, Earlybird Venture Capital and Partners Group.
Openwave Systems Inc. (Nasdaq:OPWV), one of the world’s leading software innovators enabling revenue-generating personalized services which converge the mobile and broadband experience, and Purple Labs, a leading supplier of Linux for mass-market 3G phones, today announced that Purple Labs has acquired the Openwave mobile phone software business, which develops and markets its browser and messaging client technologies.
“Openwave’s innovative client offerings established Openwave as an early pioneer in the mobile data market and remain an integral technology to handset manufacturers worldwide,” said Bruce Coleman, interim CEO of Openwave. “As outlined previously, we are focusing our efforts on network-based offerings. This focus will better allow Openwave to innovate and grow profitably. We wish Purple Labs success in leveraging the handset manufacturer relationships and incumbency established with our client offerings.”
“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. “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.”
Based in Chamb�ry, France, Purple Labs is funded by three European venture capital firms: Sofinnova Partners, Earlybird Venture Capital, and Partners Group.
Under the terms of the definitive agreement, Openwave transferred assets of its client 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 to Purple Labs for up to six months, and will bear the first $2 million of such expenses.
Openwave Systems Inc. (Nasdaq: OPWV) is one of the world’s leading innovators of software applications and infrastructure designed to enable revenue-generating, personalized services, including merchandising and advertising, which converge the mobile and broadband experience across all of a user’s devices.
As the communications industry intersects with the Internet, Openwave software enables service providers to converge services, increasing the value of their networks by accelerating time to market and reducing the cost and complexity associated with new service deployment. Openwave’s unique product portfolio provides a complete range of service management, messaging, location and client technologies. Openwave is a global company headquartered in Redwood City, California. For more information please visit www.openwave.com.
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. For more information, visit www.purplelabs.com.