Nokia Acquires Intellisync

On November 16, Nokia announced it plans to acquire mobile messaging vendor Intellisync.

One of Nokia’s major drives is to bring mobile support to the enterprise. This acquisition makes tremendous sense:

  • Intellisync has proven tools and skills for connecting office email systems and corporate applications (e.g., CRM) with mobile devices.
  • RIM is the clear leader by way of connecting mobile devices. After this come Extended Systems (now owned by Sybase), Good Technology, and Intellisync.

Microsoft and IBM aren’t yet very significant players:

  • IBM’s mobile offerings seem to be in a persistent state of flux. As a result, even its largest Notes customers have adopted the third-party solutions listed above.
  • Microsoft clearly intends to play in the space of connecting mobile devices to Exchange. The bundling of free mobile connectivity with Exchange 2003 Service Pack 2 and Windows Mobile 5.0 will likely make Microsoft a Tier 1 mobile vendor by default.

The price paid, $430 million, is fair and indeed generous to Intellisync shareholders. Conversely, Intellisync should offer Nokia substantial leverage and give the firm an important competitive edge.

David Ferris

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