Sybase

(SY) - Get Report

agreed to buy mobile messaging player Mobile 365 for $400 million in cash.

The transactionis expected to close in the fourth quarter, subject to regulatory approvals and other specified closing conditions, the Dublin, Calif.-based company said.

Chantilly, Va.-based Mobile 365 generated about $90 million in revenue for its fiscal year ended March 31.

"The mobile messaging market in the U.S. alone is expected to grow to $7.5 billion by 2008. Getting closer to this exploding mobile market through carriers is a key extension of our Unwired Enterprise strategy. Mobile 365 brings unparalleled breadth and depth of carrier relationships and the largest mobile messaging and content delivery platform, solidly positioning Sybase between carriers, global brands and mobile content," the company added.

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