RealTime IT News

Brightpoint Pays $300M For Denmark's Dangaard

U.S. based cell phone distributor Brightpoint today agreed to pay more than $300 million in stock and assumed debt for Dangaard Telecom, Europe's largest mobile phone distributor.

The agreement highlights the maturity of the mobile phone market as logistics leader Brightpoint, known for creating a pipeline between handset makers and carriers, links up with Europe's Dangaard, which distributes cell phones and smartphones.

The combined companies distributed more than 64 million cell phones, or six percent of the 1 billion handsets worldwide in 2006. With over 25,000 customers in 25 countries, the union could form the largest distributor in the U.S. and Europe.

According to the companies, the combination will be financially strong, with $4.6 billion in 2006 revenues and $106 million in operating income.

Brightpoint CEO and Chairman Robert Laikin told internetnews.com Dangaard gives Brightpoint access to 10 more nations.

For Brightpoint, Current Analysis analyst Avi Greengart told internetnews.com the deal "broadens their reach and lets them apply their logistical expertise across a bigger pool of devices."

Brightpoint will grant Dangaard Holding A/S 30 million shares of Brightpoint, plus $100,000 to buy all outstanding shares of Dangaard.

Plainfield, Ind.'s Brightpoint will be the corporate headquarters of the combined company; Padborg, Denmark will be the European headquarters of the combined company.

Wall Street approved of the deal; Shares of Brightpoint were trading at $11.67, up $1.39 Tuesday afternoon.

In related mergers and acquisitions news, OpenWave Systems Inc.  purchased mobile Web access software maker WiderWeb Limited for $5 million in cash and a potential $4 million earn-out.

OpenWave said in a statement it acquired WiderWeb for it Internet browsing tool, which reformats Web content for mobile phones in a XHTML/MP format to facilitate Internet use of mobile devices.