Paragon's Over-the-Air Synchronization acquired by Phone.com
[February 8th 2000] Phone.com, a leading provider of mobile Internet software and
services, today announced it has signed a definitive agreement to acquire Paragon Software Ltd for approximately $500 million in stock. Headquartered
in Newbury, United Kingdom, Paragon Software is a pioneer of synchronization technology allowing PC-based personal information to be easily transferred
to mobile devices. Paragon Software's product, FoneSync(tm), enables users of PC and Internet-based personal organizers such as Microsoft
Outlook(tm), Lotus Notes(tm), Excite@Home, and Yahoo to download and synchronize contact
information to over 240 digital mobile phones from 20 major manufacturers including
Alcatel, Ericsson, Nokia, Panasonic, Philips, Samsung, Sanyo, Siemens, and Sony.
"We have licensed our market-leading UP.Link(tm) Server Suite to over 50 wireless network operators worldwide," said Alain Rossmann, chairman and
chief executive officer of Phone.com. "With the acquisition of Paragon Software Ltd we add significant new value to our Wireless
Application Protocol (WAP) platform by leveraging the power of data synchronization. Mobile phone users are demanding touch-of-a-button
information management between the mobile phone, PC applications, and Internet information services whether or not they are on-line. The
combination of Paragon Software and Phone.com will rapidly drive this technology to market."
"FoneSync is firmly established as the leader in PC to mobile phone
synchronization. We have marketing agreements in place with numerous partners including Nokia, Ericsson, AT&T Wireless, Microsoft, and Lotus,"
said Colin Calder, chief executive officer of Paragon Software Ltd. "Extending our technology to WAP-based over-the-air synchronization will
revolutionize the way people use their phones. The synergy with Phone.com's marketing, sales channels and development organization makes this a powerful
combination."
This acquisition is in line with Phone.com's strategy to create the leading platform for the delivery of Internet services and personal information to
mobile phones. "Paragon's success with FoneSync demonstrates the tremendous value that synchronization brings to users of mobile phones," said Alan
Black, chief financial officer of Phone.com. "We will further differentiate our platform by integrating this technology into our UP.Link Server Suite
and UP.Browser, adding a service which drives usage and increases customer loyalty."
In connection with the acquisition, Paragon Software's shareholders will receive approximately 3.6 million shares of Phone.com common stock, and cash
payments totalling $7.5 million. The stock-for-stock transaction will be accounted for using purchase accounting and closing is anticipated to occur
in the first calendar quarter of 2000. The acquisition is subject to customary closing conditions. Integration of the two companies and their
products is expected to occur rapidly. Paragon Software's 63 employees will be integrated into Phone.com's engineering, marketing, and sales
organizations.
"Both Phone.com and Paragon Software are key suppliers to AT&T Wireless,"
said Kendra Vandermeulen senior vice president of product development and strategy for AT&T Wireless. "We are delighted to see them team to provide
even more value to our customers by integrating their browsing and synchronization technologies."
www.phone.com
