RIM offloads cloud provider NewBay for £34m
BlackBerry maker sells off cloud business 15 months after buying it.
Mobile software developer Synchronoss Technologies has acquired Research In Motion-owned cloud service provider NewBay for $55.5 million (£34.3 million).
The sum is half what RIM paid to acquire the firm in October 2011.
Dublin-based NewBay produces a white-label software platform, LifeCache, which lets mobile operators deliver cloud-based content services, such as video streaming and photo albums to their customers.
The company was acquired 15 months ago by the troubled BlackBerry maker for an undisclosed sum, believed by analysts to be in the region of $100 million (£61.8 million). However, continuing financial troubles have forced RIM to shed non-core assets.
Reports that NewBay was up for sale first surfaced in August 2012 and the acquisition by Synchronoss was completed in December.
Stephen G. Waldis, Synchronoss’ CEO, said: “By adding NewBay's technology assets and millions of subscribers, this transaction further establishes Synchronoss as the clear leader in providing cloud based mobile content services for mobile operators around the world.
“We are excited to bolster our international presence through the acquisition of NewBay, including a major European mobile operator in the early stages of a significant planned expansion ... [and] we believe that the combination of NewBay and Synchronoss will further ensure the success of the significant cloud services launch being prepared at Verizon Wireless, which remains on schedule,” Waldis added.