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Phone.com and Software.com to merge

Combined company will be a powerhouse in wireless Internet access technology.

The emergence of the wireless Internet has driven a $6 billion merger between Phone.com and Software.com.

The two companies develop software that service providers use to roll out both terrestrial and wireless Internet services.

The merged company will now be well placed to ride the latest big wave in Internet usage, wireless Net access from mobile phones and handheld computers.

Sticky Content

"These wireless operators are doing all they can to offer more than dumb wireless connections by gradually providing sticky content in the way of services that mobile workers can access services that build usage of the wireless connections," explains Forrester Research analyst Amanda McCarthy.

The merger was approved unanimously by each company's board of directors. Shareholders of Phone.com and Software.com will each own approximately 50% of the combined company.

The merged company has already appointed a new, heavyweight CEO, Don Listwin. He has been leading Cisco's service provider and consumer lines of business and has been integral in the development of Cisco’s Internet technology and services.

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