Comverse to get Odigo for only $2m - Yedioth - TheStreet

Telecom solutions firm Comverse Technology (Nasdaq:CMVT) is about to buy instant messaging startup Odigo. But the price tag may be a lowly $2 million, a far cry from the $100 million million that Openwave Systems (Nasdaq:OPWV) paid last year for Avogadro, which developed technology that competes with Odigo's, Yedioth Ahronoth reports.

Just three months ago, Odigo's managers said the company might be able to raise up to $20 million in third-round financing. In January 2001 Odigo collected $15.4 million from investors, at which time Comverse kicked in several million dollars.

Last week TheMarker reported that Odigo employees are undergoing professional training at Comverse's Tel Aviv facility.

By buying Odigo, Comverse hopes to tap into the mobile instant messaging market.

At the February cellular exhibition in Cannes, France, Odigo demonstrated next-generation cellular phones incorporating mobile instant messaging, and identification of existing users based on Wireless Village protocol.

Wireless Village protocol is an initiative of the world's three leading cellular phone makers, Ericsson (Nasdaq:ERICY), Motorola (NYSE:MOT), and Nokia (NYSE:NOK) that aims to create a single, interoperable instant messaging standard.