Mobixell Networks, a San Jose, Calif.-based provider of mobile multimedia and advertising solutions, has acquired Toronto-based mobile Internet company 724 Solutions. No financial terms were disclosed. Mobixell has raised around $29 million in VC funding, from firms like Apax Partners, Comverse, Intel Capital, and SMAC Partners. Austin Ventures took 724 Solutions private in 2006, for approximately $18.5 million.
Mobixell Networks, a leading provider of mobile multimedia and advertising solutions, announced today the acquisition of mobile internet company, 724 Solutions. The merged company will create a global organisation with local sales and support capability in the US, UK, China, Switzerland, India, Israel, and other countries, and with a customer base of over 350 mobile operators worldwide.
The expanded company will focus on delivering rich media mobile internet and messaging solutions for mobile operators, enabling them to exploit the opportunities presented by the explosion of rich-media data traffic and the emergence of new exciting communication patterns driven by the ever increasing mobile media consumption on laptops, iPhone(R) devices and other smartphones.
The rationale for the acquisition was driven by a joint vision of the two management teams, also shared by the combined company’s customers and channel partners, as well as compelling synergies in the core competencies and technologies. 724 Solutions’ Seamless Access and Seamless Messaging products provide scalable, reliable and extensible mobile internet, mobile broadband and messaging infrastructure that enable operators to efficiently and flexibly satisfy the explosion of mobile data traffic. Mobixell possesses unrivalled expertise in adapting and manipulating rich- media content, particularly for mobile messaging and video, and in providing advanced Mobile Web 2.0 and Mobile Advertising solutions. The objective in combining the two technologies is to deliver a next generation intelligent Mobile Internet Platform capable of taking a leadership position in the rapidly changing Mobile Internet market. This solution will address the challenges for mobile operators in dealing efficiently with the explosion of data traffic, particularly video, and will allow them to further monetize data and messaging Web 2.0 based services.
Both Mobixell and 724 Solutions count hundreds of mobile operators amongst their customers, including many tier-1 mobile operators in Europe, North America and APAC, including Verizon Wireless, Vodafone, Orange, Swisscom, Turkcell, AIS and many others. The combined company intends to continue to partner with its strong OEM channels and system integrators such as IBM, Motorola, Alcatel-Lucent, NSN, Huawei, Ericsson, Comverse and many others.
According to Amir Aharoni, CEO of Mobixell, “The recent explosion in mobile data offers a challenge and an opportunity for mobile operators. A challenge in terms of optimizing the usage level for bandwidth hungry applications, such as rich-media and video, but more importantly an opportunity to capitalize on the growing revenue potential of mobile data and compensate for the reduction in voice revenues. The combination of expertise and technology between Mobixell and 724 Solutions uniquely positions us to tackle this issue and allow mobile operators to improve the return on their infrastructure investment in the burgeoning mobile internet traffic, expected by industry specialists to grow 66 fold by 2013.”
John Sims, CEO of 724 Solutions commented, “The synergy and potential offered by the combined strengths and skills of 724 Solutions and Mobixell will allow us to offer our customers, the mobile operators, a real triple play of benefits: the ability to differentiate themselves from competitors, the ability to cut data handling infrastructure costs and the ability to further monetize their existing assets with solutions, such as the advertising and location-based services. Our existing customers and channel partners will continue to receive our full commitment – with a broader set of resources and value to meet their needs.”
The combined company will be unveiling the joint vision and showcasing its extended offering at the Mobile World Congress in Barcelona, from the 15th to the 18th of February, Hall 1, booth 1A23. To set up a meeting, please contact us at: email@example.com.
For more information on 724 Solutions, please go to http://www.724.com.
Mobixell Networks provides innovative multimedia and advertising solutions to mobile operators and content providers. Mobixell’s solutions focus on enhancing the user experience to increase adoption, encourage customer loyalty, and build on the operators’ assets to introduce new revenue streams. Mobixell provides tailored solutions for multimedia processing and adaptation, and multi-channel mobile advertising to over 300 mobile operators and content players worldwide, including top-tier carriers in five continents. Founded in late 2000, Mobixell is a US based company with additional offices in the UK, Germany, China, and Israel. For more information, visit the company’s website at http://www.mobixell.com