Esmertec, a company that provides software platforms, applications and services to communication device manufacturers and mobile telecom operators, has signed an agreement with Sofinnova Partners and Safran as shareholders of Sagem Wireless to acquire Sagem Mobiles' software platform activities.
The transaction, paid-off 100 percent in shares, is expected to be finalized before end of 2008 subject to approval of employee representative bodies.
“The acquisition of Sagem Mobiles' software platform activities brings Esmertec to the next stage, strengthening its position as software and services provider for the wireless and converging consumer electronics industry,” said Thomas Hornung, Esmertec's CEO.
Hornung added, “By greatly diversifying its products and services portfolio, Esmertec is creating additional business opportunities which will support its growth for the coming years.”
Once the deal is through, Esmertec and Sagem Wireless will enter into a long term strategic agreement, underpinned by a first 3-year business relationship for an aggregated minimum value of EUR 51 million.
During the agreement period, Esmertec will provide Sagem Wireless with a mobile software platform and related services created by a team of about 100 expert engineers based in Cergy-Pontoise joining Esmertec's global team as part of the transaction.
“We are pleased to welcome a great team of engineers, recognized for their competence and expertise,” mentioned Hornung. “Together with our existing research and development team, we will be ideally positioned to design and develop innovative software platforms and solutions.”
This acquisition enables Esmertec to expand its business significantly on a profitable basis, strengthening Esmertec's customer relationships through additional products and services beyond Java in-device engines. Besides this, it enables the company to have an opportunity to further penetrate the high growth segment of voice-centric mobile phones, driven by the rapid expansion of mobile services in developing markets.
The deal also complements Esmertec's mid and long term strategy to extend its footprint in mobile software stacks by combining a world class, mature software platform with a flexible, future proof Java middleware and application layer to serve the upcoming mobile convergence and consumer electronics devices industry.
Jai C.S. is a contributing editor for IoTevolutionworld. To read more of Jai’s articles, please visit his columnist page.
