Intellisync to acquire Search Software America

February 27, 2004

SAN JOSE, Calif.-Synchronization company Intellisync Corp., which recently changed its name from Pumatech, announced it will acquire rival synch company Search Software America for $20 million in cash. The move comes on the heels of the company’s latest quarterly release, which shows rising revenues but a larger net loss due to the company’s recent spate of acquisitions.

Wall Street appeared to remain unimpressed with Intellisync’s activities, sending the company’s stock down after the news. Merriman Curhan Ford also downgraded the company’s stock. Intellisync’s stock was hovering at about $3.30 per share.

Intellisync said it will acquire Search Software America, which offers technology to synchronize records without creating duplicates.

“With the addition of these important technologies, we believe that we will be able to significantly increase our customers’ ability to find matches and manage or eliminate duplicates during synchronization and data management,” said Woodson Hobbs, the company’s president and chief executive officer.

Intellisync recently acquired several other companies, including wireless enterprise company Synchrologic.

In its second quarter, Intellisync reported net revenues of $10 million, way up from the $5.8 million it reported in the same quarter a year ago. However, the company’s net loss widened to $3.2 million in the quarter compared with $747,000 in the same quarter last year due to acquisition expenses.

“Our second fiscal quarter signaled the completed integration of our various acquisitions into the company’s framework,” Hobbs said. “The integration of our most recent acquisition, Synchrologic, played a major role by boosting our enterprise-based revenue in the second fiscal quarter. We believe that the Intellisync Mobile Suite enterprise server platform, combined with our various other technologies, positions Intellisync as a leading provider of synchronization and mobile infrastructure solutions to the enterprise, consumer and carrier markets.”

Intellisync said its patent battle with Extended Systems is set to go to trial in April.