Smith Micro Software has agreed to acquire Core Mobility for $10m in cash and 700,000 shares of its common stock, to expand its mobility offerings portfolio and initiatives with existing customers.
In addition, Core Mobility may have the ability to earn additional cash consideration in the form of an earn-out, contingent on achieving certain milestone deliverables for product development and deployment, Smith Micro said.
Core Mobility is a developer of mobile offerings for synchronisation, backup and restore of critical user data as well as push-to-talk software and visual voicemail services. Its portfolio serves wireless carriers and device manufacutures with mobile handset software, as well as hosted software-as-a-service offerings.
William Smith, Jr., president and chief executive officer of Smith Micro Software, said: We expect that Core Mobility’s technical excellence, innovative product offerings and sizable patent portfolio will be a great complement to our existing technologies and industry-leading mobility software portfolio.
“This acquisition will add depth to our engineering capabilities for handheld client software and expands our ability to offer managed services that will complement our multimedia and cloud computing strategy. We are excited to bring the Core Mobility team into Smith Micro’s family and to create product synergies to continue serving our customers’ growing mobile broadband voice and data subscriber base.
The transaction is subject to certain closing conditions and is expected to be completed in the fourth quarter of 2009.
