Shares of dot-com survivor
shot up 83% to 97 cents Friday on news that
will acquire the provider of wireless information software for $38 million in cash.
AvantGo will become part of Sybase's iAnywhere Solutions subsidiary, which develops mobile databases for large businesses.
"It's a good fit. We're already a leader in mobile databases. This will allow us to add their Web expertise to become even stronger," said iAnwhere President Terry Stepien in aninterview.
AvantGo is best known as a consumer-oriented company that sends third-party data, like stock prices, weather and maps from the Internet to handheld devices wirelessly. Sybase, an enterprise software company, earns about 10% of its annual revenue by building mobile databases that enable users to access and use corporate data on notebook PCs. Sybase's current mobile products and services are based on client-server technology, which lacks the flexibility of the Web-based technology used by AvantGo.
Although AvantGo will disappear as a company, Sybase will maintain the brand and expand its reach, Stepien said.
In recent trading Sybase was up 9 cents, or 0.7%, to $13.24.