Synchronoss to purchase FusionOne
Synchronoss plans to buy FusionOne in a deal that could grant phone users to sign up for a new phone and transfer data from their old phones at the same time.
Synchronoss will pay $40 million up front for FusionOne and will pay an additional $35 million if FusionOne achieves certain performance targets through 2011, Synchronoss said. It did not state what those targets are.
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Operators and retailers use Synchronoss’ software for subscriber activation, order management and service provisioning. FusionOne offers mobile content back-up services that can be used by 600 phone models and are offered through Verizon, AT&T, Cellular South, CenturyLink, and Bell Mobility.
The most easy FusionOne service, which is often re-branded by the operators, stores a user’s address book so it can be transferred to a new phone. FusionOne also offers operators services that back up pics and other content that people collect on their phones.
In a statement, FusionOne’s CEO stated his customers state they want mobile content transfer and synchronization integrated into the activation process. That would grant phone users to buy a new device and have it activated and synched with their old device at the time of purchase.
As part of the acquisition, Synchronoss will get more than 40 issued and pending patents related to mobile content transfer and synchronization, the company said. It anticipates the deal to close this month.
As smartphone users do more with their phones, including take videos and photos, they are increasingly interested in backing up that content. Many different companies in the mobile market are experimenting with the ideal way to offer back-up services. For example, Apple offers MobileMe, a service that synchs email, contacts, and calendar across a user’s iPhone and Mac. Microsoft recently began offering a service called Kin Studio along with its Kin phones that lets users back up all content from their phones online, where they can view it all on a timeline. The future of Kin Studio is unclear now that Microsoft has discontinued the Kin handsets.
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Submited at Thursday, July 8th, 2010 at 3:00 am on News by alliana
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