Nokia to Buy Intellisync To Bolster Mobile Email
Nokia Corp. agreed to buy wireless messaging firm Intellisync Corp. as the cellphone giant tries to bolster its mobile email service for companies.
Under the terms of the deal, Intellisync stockholders will receive $5.25 a share in cash. The price is 5% below Intellisync's closing price Tuesday of $5.54 on the Nasdaq Stock Market. Nokia said the offer gives Intellisync an implied enterprise value of about $430 million.
Intellisync, San Jose, Calif., is one of several companies that compete with Research In Motion Inc., the maker of BlackBerry email devices. Carriers like Verizon Wireless use Intellisync's software to provide data services and mobile email to customers' smartphones and PDAs. Its mobile email software is also used by corporations like Pfizer and Domino's Pizza.
Espoo, Finland-based Nokia, the world's largest cellphone maker, recently launched a mobile email service for companies and their employees. Under the service, users are able to send and receive email through their corporate accounts or via Web-based email such as Microsoft's Hotmail. Acquiring Intellisync would allow Nokia to offer its customers the ability to connect practically any device to any data source or network.
The transaction is expected to be completed in the first quarter of 2006. Intellisync, which was founded in 1993, lost $13.4 million on revenue of $59.5 million for the 12 months ended July 31. The company has around 450 employees.
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