XcelleNet AcquisitionTo Help iAnywhere Deliver End-to-End Mobile Solutions

Dan Elliott, vice president of mobile business solutions for CompuCom, a Dallas, Texas-based solution provider, also said the move brings together complementary enterprise mobile products and is good news for the channel.

"Specific areas, like what XcelleNet has in security and management and then what iAnywhere has back on the database side and then what they are capable of doing with that is just a well-rounded, complete mobile solution coming together," said Elliott.

Friday morning Sybase said it agreed to acquire Atlanta-based XcelleNet, for an estimated $95 million in cash. Xcellenet is "frontline" management software company best known for its Point of Action approach to mobile software solutions.

Rob Veitch, director of business development for iAnywhere Solutions, Dublin, Calif., said the acquisition brings together all the critical segments for the emerging mobile enterprise market.

It also makes Sybase/iAnywhere Solutions a leader in the mobile database, middleware and device management markets.

"The net effect is it's going to make us, combined, the natural place to turn to for anybody who wants to unleash the unwired enterprise," said Veitch.

One particular critical mobile technology component XcelleNet brings to the table, said Steve Jobb, vice president of marketing for XcelleNet, is mobile data security solutions. For instance, said Jobb, XcelleNet's Afaria solution allows companies to protect sensitive data on handheld devices in case the device is lost or stolen.

"Things like being able to encrypt selected data on the device so that is someone picked up your PDA, for instance, they would not be able to open up your e-mail or your calendar," said Jobb. "It's part of answering that demand from companies that want to be able to control mobile devices in the field from a central location."

Elliott said as a follow-up to Sybase's 2002 acquisition of mobile enterprise software company AvantGo, iAnywhere's new ability to encrypt certain information is one reason this is a smart purchase by Sybase.

"I think this also opens the doors to an existing client base that XcelleNet has with its Afaria product that would give them some tremendous opportunity to upsell the larger product base," said Elliott.

Veitch said iAnywhere would be looking to recruit more solution providers after the acquisition is finalized. "Both of us recognize the importance of channel partners in bringing expertise particularly in vertical market segements," said Veitch.

XcelleNet's partner base includes particular vertical market expertise in the retail market segment, Jobb said. Veitch said the combined company would be looking for new partners that also bring expertise in retail and other markets that involve mobile workers, such as healthcare, utilities, and sales forces for a variety of industries.

The acquisition could give the small, privately-held XcelleNet reach wouldn't be able to achieve on its own.

The deal, funded by investment firm Francisco Partners, Menlo Park, Calif., is expected to close in the second quarter and would give bring about 2,200 XcelleNet global customers into Sybase's fold.

The acquisition also comes with expanded relationships with key XcelleNet partners such as Microsoft and Hewlett Packard. Francisco Partners, a large technology-focused private equity firm would oversee the acquisition, pending all regulatory approvals.

Veitch said while plans are not final, it looks like Terry Stepien will remain president of the combined organization. He also said that because there is a limited amount of overlap between the two companies, staffing level reductions and office closures should be minimal.