Openwave Acquires Cilys

Openwave Systems buys Canadian optimization software vendor Cilys for $10M in cash and stock

January 11, 2005

2 Min Read

REDWOOD CITY, Calif. -- Openwave Systems Inc. (Nasdaq: OPWV), the leading provider of open software products and services for the communications industry, and Cilys, a Canadian wireless telecommunications software infrastructure vendor located in Trois-Rivières and Montreal, today announced they have signed a definitive agreement for Openwave to purchase all outstanding shares of privately held Cilys. Openwave plans to integrate Cilys' allgo*mobile™ technology, which is currently deployed by an Orange Group subsidiary, into Openwave's client and server product offerings.

Cilys' optimization technology, which increases speeds for accessing mobile data services and compresses the amount of data sent over 2.5 and 3G networks, will improve the performance of mass market mobile phones, smart phones, PDAs and portable computers. The Openwave combined product offering will strengthen the company's position and offerings for mass market phones. As a result of operators deploying this technology, subscribers will experience major speed improvements when browsing, emailing, messaging and downloading content such as email, games, music and ringtones.

"We welcome the Cilys team and technology to Openwave. Cilys' technology will be an important piece of our client and server solutions to allow wireless operators to deliver and deploy innovative services with the best possible user experience," said Paul Anderson, vice president and general manager of Openwave's mobile infrastructure products. "We expect Cilys' technology will help operators generate capital expenditure savings since the technology compresses the amount of data sent over the network and thereby reduces the need for spectrum and investment in access infrastructure."

Financial Terms and Schedule
Under the terms of the definitive agreement, Openwave will acquire all outstanding shares of Cilys for a total purchase price of approximately US $10 million. The purchase price will be paid with a mixture of approximately 50 percent cash and 50 percent stock. The transaction is expected to close in the first quarter of 2005 and is subject to customary closing conditions.

Openwave Systems Inc.

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