has entered into a definitive agreement to acquire FirstHand Technologies
. The acquisition will allow CounterPath to combine its suite of softphone and server applications with Fixed Mobile Convergence solutions from FirstHand to deliver an integrated communications experience and empower workforces to go mobile.
"Mobile VoIP technologies are in high demand and the market is rapidly moving from trials to deployments," said Greg Pelling, Chief Executive Officer of CounterPath. "The acquisition of FirstHand allows us to extend our carrier and enterprise client value proposition from the personal computer to most major mobile devices. All of our tier one fixed-line carrier customers own, operate or partner with a mobile service provider in one form or another. Our new mobile software products create tremendous opportunities for CounterPath to lever our trusted supplier relationships and add even greater value to our world class customers' VoIP offerings."
FirstHand's solution extends enterprise unified communications services to a wide range of popular mobile devices such as RIM Blackberry, Nokia and Microsoft Windows Mobile, delivered over any mobile network including WiFi, GSM and CDMA. These smart phones and dual-mode devices are effectively transformed into business communications tools with fully featured PBX telephony services and productivity enhancing collaborative services such as Instant Messaging, Presence and Conferencing. Using FirstHand's technology, enterprise customers can use their existing communications equipment and infrastructure to take advantage of unified communications on their mobile devices.
"Upon completion of the acquisition of FirstHand, CounterPath will not only enhance its product offering but also strengthen its engineering team and broaden its intellectual property portfolio," said Sir Terence H. Matthews, Chairman of Wesley Clover and CounterPath. "This is a solid acquisition for CounterPath and I believe that there will be a wealth of new opportunities for the company in the large and growing mobile space."
Fiscal Details Related to the Acquisition
Under the terms of the agreement, CounterPath will acquire all of the shares of FirstHand in exchange for 29,500,000 shares of CounterPath's common stock. Upon closing, FirstHand will be debt free and contribute approximately $6 million in cash to the combined entities. FirstHand's investors, including Covington Capital, Skypoint Capital Corporation and BDC Capital Inc. will collectively own approximately 23% of the common shares of CounterPath. The closing of the transaction contemplated by the definitive agreement is subject to customary closing conditions and is expected to close on or about February 1, 2008.