Nokia deals messaging business to Synchronica
Nokia (NYSE:NOK) has agreed to sell off its messaging business to messaging services firm Synchronica. Financial terms were not disclosed.
Nokia's Operator Branded Messaging platform supports MSN Hotmail, Yahoo Mail, AOL, Gmail and other portal/ISP email services on a single mobile device client. Synchronica acquires Nokia's white-label mobile email, IM and social networking gateway and client software, as well as ten North American operator contracts, including deals with Verizon Wireless (NYSE:VZ), AT&T (NYSE:T), Sprint (NYSE:S) and T-Mobile USA.
In addition, Synchronica will take over development, maintenance and support of the messaging software preloaded on Nokia Series 40 and Symbian devices. About 250 employees, externals and contractors will transfer from Nokia to Synchronica when the deal closes in the third quarter.
The Nokia messaging assets bolster Synchronica's existing Mobile Gateway software, which supports services like push email, IM and social networking. Synchronica currently boasts more than 80 carrier contracts across Europe, Asia, Latin America and Africa; with the new North American operator partnerships, its addressable worldwide market grows to 1.8 billion end users.
The deal continues Nokia's transformation under CEO Stephen Elop as the handset maker evolves its smartphone platform from Symbian to Microsoft's (NASDAQ:MSFT) Windows Phone operating system. Earlier this month, Nokia confirmed it will integrate its Navteq navigation solutions unit with its mobile social networking efforts to create a new Location & Commerce business.
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