Phone.com, Inc. (Nasdaq: PHCM) said Tuesday it will buy @Motion Inc. for $285 million to add voice portal technology to its current services.
Shares in the provider of mobile Internet software and services closed at 126 1/4 Monday. The stock has accelerated its dramatic climb of almost 1,500 percent since launching an IPO in June. The company also set a stock-split in October.
@Motion is an emerging provider of voice portal technology for the converging telephony and Internet industries. @Motion's Internet Voice Portal will voice-enable both Phone.com's MyPhone mobile portal and its UP.Link Server platform, and add virtual assistant and unified messaging to the MyPhone product suite.
"This acquisition will significantly expand Phone.com's potential market by enabling any phone to access the mobile Internet via voice," said Alain Rossmann, chairman and CEO of Phone.com. Phone.com's software is currently licensed to 47 network operators and 25 phone manufacturers worldwide.
Under the terms of the deal, @Motion shareholders will receive $285 million or about 2.25 million shares of Phone.com based on the closing price December 20. The stock-for-stock transaction will be accounted for using purchase accounting and should close in the first quarter.