Sybase was founded in 1984 and was an early developer of enterprise databases. However, with the intense competition from Oracle
What does this mobile technology do? Well, a cable company can have its field technicians use laptops to record customer interactions, or a pharmaceutical distribution company can have its drivers keep track of deliveries by scanning bar codes.
Mobile 365 develops software that allows for mobile messaging -- such as sending SMS (short message service) and IM messages. Over the past year, revenues were $90 million and the growth rate was about 20%. At more than four times revenues, the price tag is not cheap.
But for Sybase to be a true player in the mobile enterprise space, it needs what Mobile 365 offers. First, Mobile 365 has a hosted solution, which is similar to Salesforce.com's
Next, Mobile 365 has more than 700 carrier relationships. This gives Sybase an opportunity to cross-sell its own products -- such as AvantGo and mFolio -- in its new carrier channel. According to Sybase's estimates, the mobile messaging market is expected to reach $7.5 billion by 2008.
With sales growing slowly (6% to $215.6 million in the second quarter), Sybase should get a bump up in its top line from the acquisition. The deal is also expected to add to earnings within six months. But, more importantly, as companies increasingly adopt mobile solutions, Sybase will now have a much better network of carriers and hosted solutions -- which should be a catalyst for growth for the long term.
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Fool contributor Tom Taulli does not own shares mentioned in this article.