MALMO, Sweden, July 8, 2004 (PRIMEZONE) -- Teleca is strengthening its multimedia offering by acquiring Popwire from Investor Growth Capital and Ericsson. Popwire has been developing software solutions and frameworks for advanced media management since 1999. The company employs 20 people with wide-ranging media and telecom skills and expertise. The acquisition also includes software products and patents.
Popwire is a world leader in compressing video and audio for distribution, for example, to mobile phones, over the internet to PCs or directly to TVs. Since 1999 Popwire has invested about 45 man-years in developing various multimedia products and solutions. Customers include 3 in Sweden, Italy and Australia, Apple, Ericsson, Singtel and Slovenia Mobitel, as well as many media companies. The acquisition will both strengthen Teleca's multimedia offering and ensure the continued development of several interesting customer relationships.
"The acquisition of Popwire gives Teleca access to experience and expertise in the area of convergence between media and telecommunications. This will enable us to further strengthen our service and product offering in an interesting and fast-growing segment," says Christer Bjork, MD of Teleca Software Solutions. "We're very impressed by the skills and expertise of the staff and we're looking forward to continuing to develop Popwire's business activities."
"Its leading position in the area of mobile telecommunications makes Teleca the perfect partner for Popwire's continued development. Popwire's products and solutions have a great deal of potential, especially in the mobile world. Joining Teleca gives us the credibility and stability that will enable us to maximise this potential," says Robert Ekstrom, MD of Popwire.
Teleca is investing about SEK 7 million in Popwire. The acquisition will not generate any goodwill. After being consolidated in Teleca's accounts Popwire's capitalised development costs will be about SEK 3 million, which will be depreciated over 3 years. Popwire will continue to capitalise certain development costs and the cash flow will remain negative for the rest of 2004. Ericsson has undertaken to buy software licences with associated support services from Popwire over a period of 18 months. Popwire is consolidated in Teleca's results from 1 July 2004. The size of the acquisition means that the positive effects on profitability are initially expected to be limited
For more information please contact: - Christer Bjork, Managing Director, Telecas Software Solutions AB, mobile: +46 70 638 16 01 - Robert Ekstrom, Managing Director, Popwire AB, mobile: +46 73 355 26 02
Teleca is an international IT services company focused on R&D that develops and integrates advanced software and information technology solutions. With in-depth expertise in the latest technology and profound industrial knowledge, Teleca helps technology- and software-intensive customers worldwide to strengthen their market position and shorten their time to market. The company has more than 2,900 employees with operations in 15 countries in Asia, Europe and USA. Teleca is quoted on the Attract40 list of Stockholmsborsen (Stockholm stock exchange). www.teleca.com
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