Phone.com, Inc. (Nasdaq: PHCM) rose 11 percent Monday after it said it will buy APiON Ltd, a Belfast, Northern Ireland-based telecommunications software company.
Shares in Phone.com, which makes software for Internet-based services to mass-market wireless telephones were up 19 13/16 to 199 3/4. The stock has been on a winning streak since it gained 151 percent in its initial public offering.
This acquisition of ApiON's WAP products and related operations will improve Phone.com's ability service the digital phone market, Phone.com said in a release. WAP, or Wireless Application Protocol, is a wireless standard from Motorola, Ericsson and Nokia for providing most cellular phones with access to e-mail and text-based Web pages.
APiON has commercial relationships for delivery of WAP software to 10 wireless network operators including Swisscom and Sonera. APiON has particular expertise in GSM, or Global System for Mobile Communications, wireless data and WAP technology.
In connection with the acquisition, APiON shareholders will receive 1.3 million shares of Phone.com valued at approximately US $239 million as of October 8, 1999. The stock-for-stock transaction will be accounted for using purchase accounting.
APiON's Irish facilities will be Phone.com's first product development center outside of Silicon Valley.