Software.com, Inc. (SWCM) Message Board

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Technology Stocks : Software.com, Inc. (SWCM)

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To: Rusty Johnson who wrote (118)	8/9/2000 6:09:08 PM
From: Rusty Johnson	Read Replies (1) of 142

Briefing.com ... Phone.com (PHCM) 92 1/2 +14 7/16: Phone.com and Software.com (SWCM 143 1/2 +35 3/4) are trading up sharply this morning after the companies agreed to merge to create a global powerhouse providing a broad range of carrier-class software to wireless and wireline carriers. Wireless operators use Phone.com's software to give customers Internet access from their mobile phones. The company has a dominating position in that market. According to CS First Boston, Phone.com enjoys well over 50% of the market for the WAP Gateway market worldwide. WAP is the de-facto world standard for wireless information and telephony services on digital mobile phones and other wireless terminals. Demand for wireless is booming as subscribers worldwide leaped to 478 mln last year from 309 mln the year before. The number is expected to reach 680 mln this year and almost double to 1.16 billion in 2002. Also, demand for additional wireless services such as Internet access is similarly expanding (for example, every new car is expected to have some level of Internet access by 2004). The deal makes a lot of sense as the companies' products and customers are highly complementary allowing significant cross-sell and up-sell opportunities through existing relationships with more than 140 major communications service providers worldwide for a broad portfolio of software products. Software.com provides e-mail and messaging platforms for the Internet, and recently intensified its focus on the wireless market with its InterMail flagship product now being available for wireless. Software.com offers wireless operators a scalable and highly reliable platform, which is key to offering services such as e-mail. In its simplest terms, the deal combines Phone.com's browser with Software.com's email and other messaging capabilities including Instant Messaging (which should be available in Q3)...Although the new company is not huge with LTM revenues of $146 mln pro forma, a very credible face was placed on the new company as Donald Listwin has agreed to become CEO for the merged company. He joins the company from Cisco where he has been responsible for developing Cisco's Internet technology and services for telecom companies. Mr. Listwin is highly regarded in the industry and passed up a number of other tempting offers to accept this position leading one to believe in the fantastic upside of this company. ...Under the terms of the agreement, shareholders of Phone.com and Software.com will each own approximately 50% of the combined company. Each Software.com shareholder will be entitled to receive 1.6105 Phone.com shares. -- Robert J. Reid, Briefing.com Subscribe to www.briefing.com Best of luck.

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