The Redwood City, Calif., company said it intends to pay $2.26 per share to buy SignalSoft in a deal valued around $59 million, according to a statement. Both companies expect the deal to close in the third quarter, the statement said.
Representatives for both Openwave and Boulder, Colo.-based SignalSoft couldn't be reached for comment Wednesday. At the close of regular Nasdaq trading Wednesday, SignalSoft shares were up $1.16, or nearly 110 percent, to $2.22. Openwave shares closed down 25 cents, or nearly 4 percent, to $6.14.
Openwave said it would add SignalSoft's software into its products and then market the goods to wireless carriers worldwide. Wireless carriers use SignalSoft products to meet a federal mandate to ensure that police are able to locate a cell phone that had 911 dialed on it.
Carriers are also exploring ways of using the equipment to offer new services such as "find a friend," in which cell phone users would pay a monthly fee to be able to know the location of a friend or colleague.
Ovum, a market analyst and consultancy, reported in February that it expects 385 million people to be using these services by 2006, generating nearly $11 billion in revenue for the carriers.
Be respectful, keep it clean and stay on topic. We delete comments that violate our policy, which we encourage you to read. Discussion threads can be closed at any time at our discretion.