REDWOOD SHORES, Calif.-The wireless messaging and e-mail market continues its race toward consolidation with news of two new funding and acquisition deals, including a massive $50 million investment in wireless e-mail company Visto Corp.
Visto said it extended its recent round of private equity financing with an additional $20.1 million, bringing its total fundraising in the past 90 days to $50.4 million. The financing was co-led by a new investor, VantagePoint Venture Partners.
“Visto has demonstrated to the market that it has the leadership and resources to shape the future of wireless messaging,” said Brian Bogosian, Visto’s chairman, president and chief executive officer. “This is just another indicator that Visto is the clear leader to deliver best-of-breed secure wireless messaging to corporate IT, device manufacturers and wireless operators.”
Indeed, Visto recently announced it merged with fellow wireless e-mail company ViAir. Visto also recently announced deals with Sony Electronics and PalmSource Inc.
Separately, messaging company MobileSys Inc. announced a merger with mBlox Ltd., a European text messaging services provider, and the closing of $8 million in venture capital and private equity. The company said it will retain the mBlox name and maintain operations in London; Sunnyvale, Calif.; and Hong Kong. mBlox will be led by MobileSys Chief Executive Officer Chip Hoffman, with mBlox CEO Andrew Bud serving as chairman and head of global operations.
“This merger of two strong leaders, fueled by a major investment, creates a technical and financial powerhouse in the SMS services market,” Bud said. “This sector is ready for consolidation and with our financial muscle and market position we will drive this process forward. Content and service providers are eagerly awaiting the opportunity to leverage their brands and content across both continents. Only mBlox can help them make it happen.”
