Sybase has announced it has signed a definitive agreement to acquire AvantGo in a cash merger valued at approximately $38 million. Sybase intends to operate AvantGo under its iAnywhere Solutions subsidiary. The acquisition is expected to be completed during the first quarter of 2003.
AvantGo has been struggling lately. Earlier this year it laid off 40% of its workforce and its CEO quit the company in September. Though best known for its My AvantGo service, which lets users download web content onto their Palm OS or Pocket PC handhelds, the majority of the company’s business comes from selling its service to large companies, who use it to let their employees access proprietary company information.
This does not mean the end of the company’s consumer offline browser service. Sybase said it plans to “build on the momentum and brand awareness of the My AvantGo service”. Hopefully, this means there will be more money to develop new versions of the AvantGo software. The company is currently working on one that is compatible with Palm OS 5.
AvantGo is a logical acquisition for Sybase. Its iAnywhere Solutions subsidiary develops embedded and workgroup databases and middleware solutions that enable mobile access to enterprise information.