REDWOOD CITY, Calif.-Wireless Internet company Openwave Systems Inc. announced it will purchase Musiwave, a music entertainment services, applications and content supplier, for more than $120 million, with an additional $18 million in contingency earnouts.
Openwave said it expects Musiwave to contribute about $50 million to $55 million of revenue in 2006 after the deal closes in late 2005.
“Openwave is focused on helping our operator, broadband and MVNO customers deliver high-quality services that generate new revenue streams,” said David Peterschmidt, president and chief executive of Openwave. “With Musiwave, Openwave will enable operators to deliver a broad range of high-value music services and associated content, quickly and safely to their customers. The combination of Openwave’s world-class data services software and client experience in over 1 billion handsets, with Musiwave’s market-leading music services is a compelling, complete solution for operators. They now have a partner with proven global expertise to deliver the latest music services and associated content to a wide variety of devices.”
In January, Openwave purchased privately held mobile download technology provider Cilys for $10 million in cash and stock. The company has purchased several other wireless data companies over the years, including location-services company SignalSoft Corp. and Java software provider Ellipsus Systems.
