SAN DIEGO - Global Code Division Multiple Access (CDMA) major Qualcomm has continued on its acquisitions spree by sealing a $57 million deal for UK's Elata. The all-cash deal, which was announced on Wednesday, gives Qualcomm control over Elata's mobile content delivery software.
With this acquisition, Qualcomm can now integrate Elata's flagship solutions for managing, delivering and marketing wireless content into the BREW product offered by it. Last week, Qualcomm acquired wireless broadband company Flarion for $600 million. Peggy Johnson, Qualcomm's president of Internet services said that after Flarion, Elata was a good addition to their portfolio, "Elata has a nice customer base. It was a piece of our portfolio missing — now we can bring content together, be agnostic about where it comes from and send it off to the user, regardless of the device they use," she commented.
Ovum analyst Tony Cripps said that any upward changes in Qualcomm's customer base would signal if the deal made business sense. Writing a research note, Cripps said, "It will be interesting to see how Elata's existing customers &mash; these include Orange France, Amena, Optimus and a few others including Three UK, which is also a uiOne customer &mash; react to Qualcomm's take over.
Especially if these customers decide to broaden the relationship to incorporate other aspects of the previously CDMA-centric BREW environment. Any such reaction would be a strong guide as to whether Qualcomm's software-focused breakout strategy is working."
Stephen Dunford, CEO of Elata was emphatic that it was business as usual. He said that a product in the lines of a joint offering by both companies should be out by the end of the year.
Posted
on : Mon, 22 Aug 2005 07:05 GMT | Business News
By : Rob Davis
|
