Motorola Acquisition Of Good Technology Sets Up Rivalry With RIM
Terms of the deal, expected to close in early next year, weren't disclosed. Privately held Good Technology, based in Santa Clara, Calif., provides wireless messaging, data access and handheld security products that compete with Research In Motion's BlackBerry platform.
Motorola, Schaumburg, Ill., called the acquisition a strategic addition to its Mobile Devices business, noting in a statement that Good Technology's software and services are deployed by 12,000 enterprises worldwide.
"The addition of Good Technology will advance Motorola's vision of seamless mobility," Ron Garriques, president of Motorola's Mobile Device business, said in the statement. "Good Technology's solutions, talent and customers complement Motorola's business and extend our ability to deliver compelling products and services to enterprise customers."
Motorola already had a business relationship with Good Technology, using its Good Mobile Messaging on the Motorola Q mobile device. Good Technology's software is also used on Palm devices.
Jack Gold, founder and principal analyst with research firm J. Gold Associates, called the acquisition a "somewhat delayed" reaction to Nokia's purchase of Intellisync in February and said the move sets up Motorola as one of RIM's primary competitors, along with Nokia.
Although Motorola and Nokia will have fuller portfolios that include devices and software to go up against RIM, "I don't think this will be particularly hurtful to RIM in the short term, as it has a loyal installed base and a pretty good war chest of its own," Gold said in a research note.
Good Technology was one of several mobility vendors recently chosen by Ingram Micro as part of the distributor's new Mobility Division, which aims to help VARs overcome the hurdles in offering mobile wireless solutions. Ingram's partnerships with Motorola, Nokia, Palm and RIM also fall under the new division.