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Extended Systems to buy ViaFone for $13 m in stock

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CIOL Bureau
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BOISE: Extended Systems Inc., a software developer for mobile data systems,

on Tuesday said it would acquire ViaFone in all-stock deal valued at $12.6

million to secure the company's wireless software technology and large

customers, including FedEx Corp.

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Boise, Idaho-based Extended Systems said it will acquire Brisbane,

California-based ViaFone for 3 million shares of Extended Systems stock, which

closed on Tuesday at $4.20, up 50 cents, or 13.5 per cent.

Extended Systems, which expects the deal to be accretive around the middle of

its 2003 fiscal year, makes software for some 2,000 business customers to extend

software applications to employees using mobile devices.

ViaFone, launched in 1999 and financed with $33 million in venture capital,

makes software allowing companies to deliver applications to popular mobile

devices, including cellular telephones and personal digital assistants. ViaFone

makes the software that allows customers of courier and transport service FedEx

to track packages over cell phones.

Extended Systems chief executive and president Steve Simpson said that

acquiring ViaFone will help Extended Systems expand into Canada, while Extended

Systems expects ViaFone's software to sell well in Europe. The acquisition is

expected to be approved by both companies' shareholders and completed by the end

of July or in early August, Simpson said.

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