3Com Corporation Acquires Smartcode Technologie; Extends Palm Computing Platform into Mobile Information Appliance Market and Establishes European Platform Headquarters
LONDON--(BUSINESS WIRE)--Feb. 10, 1999--In a move to extend the leadership position of its Palm Computing(R) platform into the mobile information appliance market, global networking leader 3Com Corporation (Nasdaq:COMS) today announced that it has acquired Smartcode Technologie of Montpellier, France.
Smartcode is a leading developer and provider of wireless data communications and Internet access software technology used by many of the world's leading cellular telecommunications companies. Smartcode's 33 employees will form the nucleus of 3Com's new Palm Computing platform's European development center in Montpellier.
Through this acquisition, 3Com adds advanced wireless communications capabilities to the Palm Computing platform to address the fast-growing market for mobile information appliances such as cellular telephones, messaging devices, data communicators and smart phones.
These capabilities complement existing Palm Computing platform components, which include the device operating system, core personal information management applications, application program interfaces (APIs) for software developers, the reference hardware design and the software interface capabilities to support hardware add-ons.
Enriching the platform with these new wireless capabilities will enable 3Com to further extend its Palm Computing platform licensing strategy to a broader range of telecommunication equipment manufacturers worldwide.
3Com has acquired all outstanding shares of Smartcode Technologie in a cash purchase valued at approximately U.S. $17.5 million. The acquisition is not expected to materially impact 3Com's fiscal 1999 results.
Smartcode's president and CEO, Alain Molinie, will become general manager of the group, to be called Palm Computing Platform Europe. Molinie will report to Mark Bercow, vice president of strategic alliances and platform development at Palm Computing, Inc., a 3Com company.
"The acquisition of Smartcode will continue to drive the phenomenal growth of the 'Palm Computing Economy' for developers, vendors and customers in the worldwide mobile information appliance market as well as further 3Com's vision of pervasive connectivity," said Janice Roberts, 3Com senior vice president of business development.
"Adding new wireless communications capabilities to the Palm Computing platform and establishing our new Palm Computing platform European headquarters, coupled with last week's announcement extending the Palm Computing platform to Japan, underscores our commitment to driving market growth and expanding our leadership in the worldwide mobile computing marketplace."
Serving the Burgeoning Market for Mobile Information Appliances
The acquisition brings 3Com an extensive set of advanced wireless communications system software, a seasoned business development group and a premiere research and development team, to serve the burgeoning market for mobile information appliances. Mobile information appliances are small form-factor products with integrated or add-on communications capabilities that provide access to and management of information from a wide variety of sources.
Smartcode's system software extensions, communications protocol stacks and end user applications provide highly efficient, cost-effective communications and Internet access for these appliances, which are limited in the processing power and memory that they can support due to their small size. Importantly, Smartcode's solutions support the leading wireless standards deployed around the world, such as GSM, GPRS and CDMA.
As Palm Computing Platform Europe, the new group will serve and extend its existing industry relationships with the leading worldwide information appliance manufacturers, carriers and technology providers. This blue-chip list includes industry leaders such as Alcatel, Motorola, Samsung Electronics, TDK Systems and others.
When combined with 3Com's relationships with these and other leading cell phone, data messaging and PC manufacturers, this forms a powerful industry force to help shape technology standards for the benefit of customers worldwide.
"With this acquisition, the Palm Computing platform, combined with Smartcode's advanced wireless technologies, is an attractive solution enabling mobile handset vendors to provide their customers with first-in-class new generation wireless information devices" said Patrick Liot, president, Professional and Consumer Division, Alcatel Business Systems. "We are very excited about this announcement and look forward to further developing our relationship with both Smartcode and Palm Computing as a single company."
"3Com's Palm Computing platform is the perfect choice for extending wireless communications to a broad audience of businesses and individuals worldwide," said Alain Molinie.
"Smartcode looks forward to playing an integral role in building the business development and engineering efforts of the Palm Computing platform group in the global wireless information appliance market. Our technology, expertise and industry relationships here fit ideally with 3Com's vision for the platform and its fast growth as the de facto industry standard."
Mark Bercow added, "Smartcode brings an ideal blend of world-class data communications talent, advanced system-level technologies and solid industry relationships to our platform efforts as we address the mobile information appliance market. The extension of the platform into this market segment will continue to fuel the emergence of new application developers and platform partnerships and also help us drive the platform further into the enterprise space. This is an important market for us as enterprise customers are seeking increasingly to extend access to their critical networked data into the pockets of their mobile work forces."
The announcement today highlights the fast growth of the Palm Computing platform in Europe. Recent market data from International Data Corp. shows that 3Com assumed the leadership position in the handheld companion market in Europe in the first half of 1998, with 46.8% market share, compared with 29.7% share for the next largest market player. (IDC, Jan 1999). 3Com continues to hold 72% of the personal companion market in the U.S. today.
The Palm Computing Platform
An open architecture for handheld computing, the Palm Computing platform provides an ideal basis for third-party developers and licensed original equipment manufacturers (OEMs) to create and deliver successful mobile computing solutions.
The platform consists of these primary components: the reference hardware design; the device operating system called Palm OS(TM) software; the core personal information management (PIM) applications such as the DateBook; the Graffiti(R) power-writing software; the HotSync(R) synchronization technology; the applications programming interfaces (APIs) that enable developers to write applications; and the software interfaces to support hardware add-ons.
Today, more than 15,000 developers worldwide are creating software for the Palm Computing platform, and thousands of software applications are already available.
In addition to the 3Com-branded Palm Computing organizers, the Palm Computing platform provides the basis for a broad range of products from 3Com's strategic partners. Such products include the IBM WorkPad PC Companion, Symbol Technologies' SPT1500 with built-in laser bar-code scanner, the QUALCOMM pdQ smart phone, the Franklin Covey Electronic DayPlanner, and the Synapse pager card from Motorola and PageMart.
About Smartcode Technologie
Smartcode Technologie, S.A., headquartered in Montpellier, France, is a leading Internet and telecommunications software developer for mobile computing devices and embedded systems. Smartcode has been producing end-user communications applications, such as Internet e-mail, web browser and fax, as well as protocol implementations, since 1995.
About 3Com
With more than 200 million customers worldwide, 3Com Corporation connects more people to information in more ways than any other networking company. 3Com delivers innovative information access products and network system solutions to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com -- More connected(TM). For further information, visit 3Com's World Wide Web site at www.3com.com or the Palm Computing site at www.palm.com.
Note to Editors: 3Com, Palm Computing, HotSync and Graffiti are registered trademarks, and Palm, Palm OS and More connected. are trademarks of 3Com Corporation or its subsidiaries. All other brands and product names may be trademarks of the respective companies with which they are associated. No products mentioned herein are manufactured by Pilot Corporation or Pilot Corporation of America, manufacturers and distributors of writing instruments.
CONTACT:
3Com Corporation
Leslie Davis, 408/326-7187 (3Com Public Relations)
Leslie_Davis@3Com.com
Shirley Stacy, 408/326-6301 (3Com Investor Relations)
Shirley Stacy@3Com.com
or
A&R Partners
Mark Rawlins, 650/363-0982 ext. 3933
mrawlins@arpartners.com
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