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.
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.