Nov. 11, 2006

Motorola will acquire privately-held wireless e-mail provider Good Technology Inc. for an undisclosed sum.

The company said the deal will expand its mobile computing capabilities and increase the company's enterprise client base.

"The addition of Good Technology will advance Motorola's vision of seamless mobility," said Ron Garriques, president of Motorola’s Mobile Devices business.

Motorola said Good will be integrated into its Mobile Device business unit. "Good Technology's solutions, talent and customers complement Motorola's business and extend our ability to deliver compelling products and services to enterprise customers.

Good Technology's software and managed service deliver a rich user experience, low cost of ownership, industry-leading security and enterprise-class support.

These competitive differentiators have led many enterprise customers to choose Good Technology. This acquisition will continue to strengthen Motorola as a leading provider of mobility devices and solutions both for enterprise customers and consumers."

Motorola’s stock was up slightly to $21.42 per share following the news. Motorola said it expects the deal to close early next year.

The deal marks another major turning point in the wireless e-mail marketplace.

With its super-slim Moto Q smart phone, Motorola is looking to unseat BlackBerry maker and market leader Research In Motion Ltd. Now, with the acquisition of Good Technology, Motorola will be able to add the wireless e-mail software component to its devices—thereby challenging RIM at both the hardware and software level.

Motorola’s acquisition of Good Technology also echoes Nokia Corp.’s $430 million acquisition of wireless e-mail vendor Intellisync Corp., which was announced late last year. Nokia too has been working to challenge RIM with phones that carry tiny keyboards and software that can wirelessly access corporate e-mail.

Motorola has previously teamed with Good Technology; the Moto Q smart phone, which runs Microsoft Corp.’s operation system, also carries Good’s wireless e-mail software.

Good sells software to businesses that delivers corporate e-mail to wireless devices; the company counts more than 12,000 businesses globally as customers.

Good’s offering requires businesses to install software on both the corporate e-mail server and on users’ wireless device. A number of handset vendors include Good’s software on their devices, and a number of carriers—including Cingular Wireless L.L.C.—sell Good’s offerings.

Interestingly, Motorola said it will continue Good Technology's multi-device strategy. Thus, Good Technology’s other phone partners, which includes Nokia, Hewlett-Packard Co. and Palm Inc., will have to get Good’s wireless e-mail software from rival Motorola.

Good Technology is not Motorola’s first major foray into the wireless enterprise market.

Motorola in September announced a $4 billion deal to acquire Symbol Technologies Inc., which makes wireless bar-code scanners and other enterprise equipment. Thus, it appears Motorola is betting heavily on the business market for wireless products and services.

Source: RCR News