Aether Systems Inc. added to its growing portfolio of investments through a strategic partnership with MicroStrategy Inc., parent company of Strategy.com.
Under the deal, Aether and MicroStrategy will develop a new product called MicroStrategy 7M, which combines Aether’s Intelligent Messaging platform with the Micro-Strategy 7 platform. The AIM technology will optimize MicroStrategy’s e-customer relationship management and business intelligence platform for wireless transmission over any network to any device, Aether explained.
The result, they say, will allow a company to notify customers on their wireless devices to any changes in purchased services. For instance, an airline would have the ability to use MicroStrategy’s databases to search which customers are affected by a flight cancellation and in turn Aether’s technology to notify them of that fact and re-book them.
The alliance also calls for Aether Capital, Aether’s venture-capital arm, to lead a $52.754 million financing round of convertible preferred stock for Strategy.com, which allows companies to send alerts on requested topics to customers via any phone, Web or wireless device.
In total, Aether is contributing $25 million of the $52.75 million, $15 million of which it already has provided. Aether is awaiting regulatory approval to contribute the remaining $10 million. After all is said and done, Aether will own about 7.5 percent of Strategy.com. The remainder of the $52.75 million will come from other investors.
Going forward, Aether will offer Strategy.com services on an OEM basis to its customers. Services include finance, weather and news alerts. In addition, David Oros, Aether’s chairman and chief executive officer, will join Strategy.com’s board of directors.
Beyond adding yet another feather to Aether’s wireless data cap, the deal brings much-needed financial relief to MicroStrategy, which suffered a disastrous 62-percent stock loss in one day last March.
However, the announcement did little to spark renewed investor confidence. MicroStrategy’s stock was down 7 cents to $25.35 at RCR Wireless News press time the morning after the announcement. Meanwhile, Aether stock jumped $8.87 to $97 on news of the deal.
