Sybase, which makes software for corporate use including databases and portals, said AvantGo will be combined with its iAnywhere Solutions subsidiary. AvantGo's software allows people to transfer data to mobile devices.
"Today's announcement is an important part of iAnywhere Solutions' strategic plans to fuel new growth in the mobile and wireless arena," Sybase CEO John Chen said in a release.
Specific financial details of the deal were not released.
AvantGo is probably best known for its consumer software that lets people check news and other information from handheld computers. But most of its business comes from corporate customers.
That business, however, has become more difficult as companies have cut back on IT spending. In July, AvantGo laid off around 40 percent of its workforce in a bid to cut costs.
AvantGo's CEO left the company in September to pursue other interests. David Pratt was named interim president and CEO in October.
AvantGo lost $5.5 million, or 16 cents per share, in the third quarter of the year, on sales of $4.5 million. In the year-earlier quarter, the company lost $21.2 million on sales of $4.9 million.