Openwave Sells Mobile Phone Client Software Business to Purple Labs for $32 Million

by: admin Tuesday, July 1st, 2008

Openwave Systems announced yesterday that it was selling it’s mobile browser and messaging business to Purple Labs for $30 Million in cash and upto another $2 million if certain conditions are met.
From the Press Release: Purple Labs, a leading supplier of Linux for mass market 3G phones based in Chambéry, France is funded by three European venture capital firms: Sofinnova Partners, Earlybird Venture Capital, and Partners Group.

“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.”

Openwave is restructuring it’s business to focus on innovation and profitability. “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.”

Openwave will be allotted warrants to purchase 2 percent of Purple Labs common stock during transition the assets over to Purple Labs, Openwave and bear the first $2 million in expenses.

Source: Openwave Systems