724 Solutions soars on Ericsson partnership
By Tomi Kilgore, CBS MarketWatch
Last Update: 4:27 PM ET Feb 29, 2000 NewsWatch
SUNNYVALE, Calif. (CBS.MW) -- Shares of 724 Solutions soared Tuesday after the company announced a partnership with Swedish telecom equipment maker Ericsson.
The stock (SVNX: news, msgs) ran 17 13/16, or 11 percent higher, to 185 3/4. The shares made a new high of 189 in intraday trading. On Jan. 28, its first day as a publicly traded company, the stock closed at 71 13/16.
The company and Ericsson (ERICY: news, msgs) said they'll create a wireless transaction network for the financial services industry. The companies will work to develop the devices and infrastructure, as well as providing secure payments between financial institutions and merchants and customers. Ericsson's shares edged 1 7/8 lower to 96 1/8.
"724 Solutions and Ericsson believe that infrastructure and standards for mobile e-commerce are important to ensure a secure and convenient customer experience," said Greg Wolfond, 724's CEO. He added that the companies' agreement would help in the "rapid development and deployment of wireless banking solutions" based on a global standard.
On Feb. 23, 724 and Motorola (MOT: news, msgs) said 724's software would be deployed in a variety of Motorola's Web-based wireless devices. Also, Motorola said it made an equity investment in the company.
Tomi Kilgore is an online reporter for CBS MarketWatch. |
