Israeli startup NomadIQ has been acquired by the American company
(Nasdaq:OMNY), in a stock-swap deal at a total value of $26.3 million. NomadIQ was established one year ago and specializes in location-based cellular services.
The shareholders of NomadIQ will initially receive 2.5 million OmniSky shares, currently valued at $18.75 million. In one year's time, if NomadIQ reaches set goals, its former owners will receive another million OmniSky shares.
The allocation of additional stock is dependent on the NomadIQ executive team remaining with the company. NomadIQ is to be renamed OmniSky Israel on completion of the deal, which should take place within the coming weeks.
OmniSky says it acquired NomadIQ in order to offer its customers instant location-based e-commerce services and instant messaging, as well advance its own location-based skills.
OmniSky Chairman and CEO Patrick McVeigh hopes this latest acquisition will help promote customer loyalty by improving OmniSky's range of services on offer. NomadIQ's services include location and access to information on business and entertainment venues in the user's locale, online communication with businesses and merchants, completion of transaction, and an instant-messaging service. Location-based services for end-users enables service providers to transfer advertisements and other promotional content to a specific geographical area.
NomadIQ founder Jacob Ner-David (Davidson) is expected to continue to head the company's R&D facility in Israel. At present, the Jerusalem-based company employs 50 workers.
OmniSky provides content to end-user mobile appliances such as palm computers, charging a standard fee. It will soon launch a similar service in Europe, via an alliance with the communications company News Corp.
OmniSky provides content services to its users via strategic agreements with
(Nasdaq:EGRP), and other similar operators.
OmniSky was founded in 1999 and was initially funded by PalmPilot maker,
(Nasdaq:COMS,) and others.