Openwave Announces Definitive Agreement To Sell Mediation And Messaging Product Businesses To Marlin Equity Partners
Openwave Systems Inc. (NASDAQ:OPWV), a global software innovator and the
inventor of the mobile internet, today announced that it has signed a
definitive agreement to sell its Mediation and Messaging product
Openwave Systems Inc. (NASDAQ:OPWV), a global software innovator and the inventor of the mobile internet, today announced that it has signed a definitive agreement to sell its Mediation and Messaging product businesses to Marlin Equity Partners. The transaction is subject to customary closing conditions and is expected to close in April 2012. Following the completion of the transaction, Marlin intends to rename the acquired businesses Openwave Mobility (formerly Mediation) and Openwave Messaging. The businesses will be managed by the incumbent divisional management teams. Openwave’s remaining entity will be renamed Unwired Planet, a name that recalls the company’s rich heritage of innovation; it will be focused on Intellectual Property and will remain a publicly traded company. Openwave’s patent portfolio is comprised of approximately 200 issued US and foreign patents and another approximately 75 pending applications, many of which are considered foundational to mobile communications. Openwave intends to provide further details on its plans for Unwired Planet in conjunction with its third quarter of fiscal 2012 financial results conference call. “Our agreement with Marlin Equity to sell our Mediation and Messaging product businesses represents a major milestone in the implementation of the corporate strategy we began last October. We believe this transaction is in the best interests of our customers, employees and shareholders,” said Mike Mulica, CEO of Openwave. “We are very impressed with Marlin Equity’s strategy for the businesses and their plans to make Openwave’s products and services more competitive through increased focus and investment in R&D. As we complete the sale of our product businesses, we will continue to focus on a multi-pronged strategy to realize the value of our unique patent portfolio.” “This transaction gives us the opportunity to create two leading software companies focused on providing carrier-grade solutions in the Mobility and Messaging segments,” stated Nick Kaiser, a partner at Marlin Equity. “We plan to make the necessary investments in both businesses to continue to deliver market-leading software to Openwave’s global customer base. We look forward to partnering with Openwave’s talented employees and executives to deliver solutions that maximize the value of an operator’s network assets.”
Shares of Openwave Systems (Nasdaq:OPWV) were gapping down Friday morning with an open price 12.3% lower than Thursday's closing price. The stock closed at $2.84 yesterday and opened today's trading at $2.49.