Previous Story: Drinking for IP law change
Next Story: EDS system drove staff to enter false data, report says

Mobile email company Seven buys Finland's Smartner
By Scarlet Pruitt

Mobile e-mail software provider Seven Networks Inc. has purchased European rival Smartner Information Systems Ltd. in a bid to expand its global presence and relationships with carriers, the Redwood City, California, company said Monday.

The deal gives Seven a customer base of 45 mobile operators across 30 countries, as well as licensing agreements with the top five handset manufacturers, including Nokia Corp. and Motorola Inc., it said. Terms of the deal were not disclosed.

Seven already had relationships with many handset manufacturers that integrate its software for sending e-mail to and from cell phones, but the acquisition of Smartner gives the company additional carrier agreements, according to a spokeswoman.

Smartner, based in Helsinki, Finland, has a strong customer base in the European market, while Seven has strengths in the U.S. and Japan, making the two companies a good fit, the spokeswoman said.

Together, the companies plan to target Fortune 500 enterprises as well as individual consumers by introducing new products and investing more in research and development, Seven said. The company's wireless e-mail products will take on the market currently dominated by BlackBerry provider Research in Motion Ltd. (RIM).

"RIM is still the 800-pound gorilla in this market but the consolidation of these companies will give them advantage against other, smaller players," said John Delaney, principal analyst with Ovum Ltd.

Agreements with a variety of handset manufacturers will also help Seven, given that RIM is locked into the proprietary BlackBerry platform, Delaney said. He added that Europe is currently the fastest growing push e-mail market, so Smartner's regional strength will also be an advantage.

The combined company will operate under the Seven brand, with headquarters in Redwood City. Seven Chief Executive Officer (CEO) Kent Thexton will head the new company and Smartner CEO Paul Hedman will become managing director of the European and Asia Pacific operations.

Posted April 11, 2005 04:05 PM |