Mobile software company Esmertec to acquire Purple Labs

European mobile software company Esmertec AG announced plans to acquire rival Purple Labs SA. The deal will create a new business under the name of Myriad Group AG that will include a client list supporting most major phone manufacturers and 30 mobile network operators.
Under the terms of the agreement, Esmertec will acquire privately held Purple Labs by trading nearly 20 million Esmertec shares for all of Purple Labs’ shares. Purple Labs is known for its mobile browser and messaging capabilities, which has the potential to mesh well with Esmertec’s experience with Java engines, Google Inc.’s Android platforms and other services. Esmertec also joined the Linux-focused LiMo Foundation last year.
Purple Labs CEO Simon Wilkinson is set to become CEO of Myriad Group AG, while Esmertec CEO Thomas Hornung will leave the company to act as an advisor for the company’s executive team.
The acquisition has been approved by each company’s board of directors but awaits shareholder approval. The transaction is expected to close by the end of March. Should everything go as planned, Myriad Group would hold 800 software engineers and bring in approximately $125 million in 2009 revenue, the companies said in a release.