To: nick stalin who wrote (3759 ) 10/24/1999 3:34:00 AM From: puborectalis Read Replies (1) | Respond to of 5529
AETHER IS BIG........ Aether snags top client before filing for an IPO By Sarah Stirland Redherring.com August 21, 1999 When leading online brokerage Charles Schwab (NYSE: SCH) earlier this week announced its intention to allow a few select customers to trade through wireless devices this year at the same time that it announced a new development partnership with Aether Technologies, it became the latest brokerage firm to publicly cast a vote in favor of the wireless technology integration firm. Though three-year-old Aether has other clients and business lines, Schwab adds to Aether's roster of top financial clients, including the Chicago Board of Trade (CBOT), Merrill Lynch (NYSE: MER), Bear Stearns (NYSE: BSC), Discover Brokerage Direct, and the Reuters Group (Nasdaq: RTRSY). It isn't clear what Aether is developing for CBOT, Merrill, and Bear Stearns, but Aether built Reuters's wireless information device MarketClip and provides the technology that enables Discover Brokerage Direct's customers to trade wirelessly through their Palm Pilots (with Windows CE in the future). TRANSLATION ON THE FLY Aether's area of expertise is the creation of middleware software that translates the various wireless protocols into formats supported by a variety of devices such as Palm Pilots, RIM 950 pagers, Windows CE devices, and, in the future, smart phones. By relying on Aether, the brokerage firms are able to offer clients a wide variety of devices on which they can view market information and trade. The addition of Schwab to its client list comes at an opportune time, since Aether just filed documents with the Securities and Exchange Commission to go public. The company plans to raise $75 million with the help of underwriters Merrill Lynch, BancBoston Robertson Stephens, Donaldson, Lufkin & Jenrette (NYSE: DLJ), and U.S. Bancorp Piper Jaffray. Based in Owings Mill, Maryland, Aether Technologies is backed by 3Com's (Nasdaq: COMS) 3Com Ventures arm, Reuters, Deutsche Bank Alex. Brown, and Telecom Ventures. Although the investments of the other companies aren't public, 3Com's stake in the firm amounts to $6 million. STANDARDS PRACTICE Officials at Schwab weren't available for comment by publication time, but the discount brokerage appears to be more extensively involved with Aether than its other clients are. Schwab has also announced that it has become part of the standards body, the Wireless Research and Application Protocol Forum, which is a global group of electronics, technology, and telecommunications firms that includes Microsoft (Nasdaq: MSFT), Intel (Nasdaq: INTC), Ericsson (Nasdaq: ERICY), Motorola (NYSE: MOT), Nokia (NYSE: NOK), AT&T (NYSE: T), IBM (NYSE: IBM), Phone.com (Nasdaq: PHCM), and Cable & Wireless (NYSE: CWZ).