RIM acquires mobile cloud software firm NewBay for $100 million: report
BlackBerry maker Research in Motion has acquired software firm NewBay in a $100 million deal, according to an Irish Times report.
AllThingsD's John Paczkowski separately confirmed the deal a few minutes ago.
Founded in 2002, NewBay specializes in the development of mobile phone software that allows users to create, store and share digital content in the cloud. The company had deals with Verizon, AT&T, T-Mobile USA (and parent Deutsche Telekom), U.S. Cellular, Telefónica O2, France Telecom Orange and Telstra.
More details from the Times report:
- NewBay employees were notified yesterday. The company has offices in the U.S., U.K., Ireland, Germany, Australia and South Korea.
- NewBay's software development center will remain in Dublin. About 200 are employed there.
- The company's flagship LifeCache software is used by 80 million subscribers worldwide.
NewBay recently struck a deal with LG to have LifeCache preinstalled on its devices; it's unclear where that deal stands with the acquisition.
NewBay had revenues of about $24.3 million in 2009; it ended that year with a net loss of about $3.6 million.
The question is whether RIM has the resources to execute on its ideas. Rival tech companies already have similar services -- primarily Apple with iCloud and Google with Apps, though Amazon has Cloud Drive -- and there is plenty enough house to return to order in Waterloo.