Getting the message

Openwave Systems, the US-based client and server side communications software developer, is to acquire UK-based Magic4, a provider of messaging software for mobile phones.

Under the terms of the agreement, Openwave will acquire all outstanding shares of Magic4 for a total purchase price of approximately $82.6 million, or $75 million net of cash on hand at Magic4.

The purchase price will be paid with a mixture of cash and stock, with the exact proportions to be determined by Openwave prior to closing and with at least 40% of the consideration to be in cash.

The transaction is expected to close in July 2004 and is subject to customary closing conditions.

Openwave anticipates Magic4 will contribute approximately $9 million to $11 million in revenue in the second half of calendar 2004, assuming the acquisition closes in July 2004, and approximately $35 million in revenue in calendar 2005.