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Openwave Sells Mobile-Phone Unit To Purple Labs For $32 Million In Cash

imageOpenwave Systems said today it was selling its mobile browser and messaging business to Purple Labs, a supplier of Linux for mass-market 3G phones, for $32 million in cash and the right to purchase up to 2 percent of Purple Labs’ stock. The purpose of the sale is to allow Openwave (NSDQ: OPWV), which has been restructuring its business, to focus on innovation and growing profitably, said Bruce Coleman, interim Openwave CEO. It will continue in the mobile business, working on its core markets of personalization, mobile advertising and the Mobile Internet. Purple Labs is based in ChambĂ©ry, France, and is backed by three European venture capital firms: Sofinnova Partners, Earlybird Venture Capital, and Partners Group. Under the terms of the agreement, Openwave will transfer its assets to Purple Labs in exchange for $30 million in cash and up to $2 million if certain conditions are met. In addition, Openwave will be allotted warrants to purchase 2 percent of Purple Labs common stock. Openwave transition the assets over to Purple Labs and bear the first $2 million in expenses. Release.<