Cash, stock deal valued at euro 99.5 million.
Redwood City, Calif.-based Openwave Systems has entered into a deal to acquire all outstanding shares of French mobile music specialist Musiwave in a cash and stock deal valued at euro 99.5 million ($121 million).
Publicly traded Openwave, which trades in the United States under the ticker OPWV, provides software products and services for the communications industry.
The company expects to pay at least 40% cash for Musiwave. The deal could be worth an additional euro 15 million ($18 million) if Musiwave delivers on certain financial conditions next year.
Openwave anticipates that Musiwave will contribute approximately $50 to $55 million of revenue to Openwave's calendar year 2006 financial results. The transaction is expected to close at the end of this year.
Said Gilles Babinet, chairman and founder, Musiwave, "Together Openwave and Musiwave will deliver a wide variety of music experiences from ringtones, ringbacktones and videotones to full track and streaming services, to a broad range of customers, while strengthening relationships with our existing complimentary wireless, broadband and handset customer base."
Musiwave's clients include Vodafone, Telefonica, Amena, France Telecom and Sagem.