Openwave Systems (News - Alert) Inc. and Purple Labs, a supplier of Linux for mass-market 3G phones have announced that Purple Labs has acquired the Openwave mobile phone software business, which develops and markets its browser and messaging client technologies. Openwave Systems Inc (News - Alert). is a software innovator that enables revenue-generating personalized services which converge the mobile and broadband experience.

 

Used by every major phone manufacturer in the world, the Openwave browser and messaging applications have made their mark in the industry. Purple Labs is looking to be a major player in mobile software by acquiring this portfolio and the Openwave client team. The company is also looking to power both traditional and Linux-based mass-market phones.

 

According to the terms of the acquisition, Openwave transferred assets of its client business to Purple Labs on June 27, in exchange for $30 million in cash, an additional $2 million if certain conditions are met, and warrants to purchase 2 percent of Purple Labs common stock. Also, Openwave will offer transition services to Purple Labs for up to six months, and will bear the first $2 million of such expenses.

 

Purple Labs is funded by three European venture capital firms: Sofinnova Partners, Earlybird Venture Capital, and Partners Group. The company is based in Chambéry.

 

“Openwave’s innovative client offerings established Openwave as an early pioneer in the mobile data market and remain an integral technology to handset manufacturers worldwide,” said Bruce Coleman, interim CEO of Openwave. “As outlined previously, we are focusing our efforts on network-based offerings. This focus will better allow Openwave to innovate and grow profitably. We wish Purple Labs success in leveraging the handset manufacturer relationships and incumbency established with our client offerings.”

 

Openwave software enables service providers to converge services, increasing the value of their networks by accelerating time to market and reducing the cost and complexity associated with new service deployment. Openwave's unique product portfolio provides a complete range of service management, messaging, location and client technologies.