Synchronoss Buys FusionOne as Mobile Market Matures

Synchronoss Technologies today said it would acquire FusionOne, a mobile contact and media synchronization company, in a deal worth up to $75 million. Synchronoss provides back-end software that helps carriers, retailers and other sellers of connected devices activate and manage subscribers across multiple devices.

Since FusionOne also helps manage content and contacts across multiple devices, the deal should enable Synchronoss to offer software that could handle activations as well as move content over when a subscriber buys a new mobile toy. Synchronoss will pay approximately $40 million, with $32 million in cash and $8 million in stock for FusionOne. Synchronoss may also pay up to an additional $35 million in cash and stock based on FusionOne’s business achieving certain performance targets through 2011. The transaction should close this month.

Countless headlines and consumer attention to smartphones and other mobile devices are helping out a less sexy side of the mobile phone industry, policy management and other back-end software (GigaOM Pro sub req’d). This software is generally used by carriers to glue data on phones together with customer bills or deliver real-time information about subscriber habits. Sterling Commerce, which IBM recently bought for $1.4 billion, offers some products in this area, and a focus on back-end systems software is why Tekelec bought Camiant and BlueSlice back in May.

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