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Analysis of Puma Technology's Intent to Acquire NetMind

Written By: P. Hayes
Published On: February 16 2000

Event Summary

SAN JOSE, Calif., Puma Technology, Inc. (NASDAQ: PUMA), a leading provider of mobile device management and synchronization software, announced it has signed a definitive agreement to acquire NetMind Technologies, Inc., a leading provider of Internet infrastructure software for personalization. Under the terms of the agreement, Puma will exchange five million shares of Puma common stock for all of NetMind's outstanding capital stock, warrants and options.

The merger is expected to qualify as a tax-free reorganization and the parties expect to account for the transaction as a pooling of interests. Closing of the merger is subject to certain closing conditions and approval by the shareholders of both Puma and NetMind. Certain affiliates of NetMind have agreed to vote their shares in favor of the merger. The transaction is expected to close in Puma's third fiscal quarter ending April 30, 2000.

Market Impact

Puma Technology produces mobile device management and synchronization software called Intellisync. Intellisync has become one of the global standards for synchronization between handheld devices and desktops, corporate databases, e-mail, and Internet Sites. In 1999, Puma Technology's stock was the number one performer on the Nasdaq Exchange, gaining over 3700%, with a low of $2 and a high of $142 per share.

NetMind produces personalization software solutions for e-business. NetMind's Mind-it application allows over 6,000,000 current clients to track information on the Internet or Intranet and receive immediate notification of changes via e-mail from NetMind's Minder Application Server.

The merger is expected to close in the 2nd Quarter of 2000 (probability 90%) and will add personalization technology to Puma's synchronization and management software. The merger targets the rapidly emerging Internet access based wireless industry, which is expected to reach more than 600 million users by 2003 (probability 70%). The combined packages will allow for data mining, extraction, notification, delivery, targeting and analytics.

User Recommendations

With the relatively recent explosion of hand-held devices and the up-and-coming wireless access phones (WAP), the demand for synchronization, personalization, and management will become more and more evident. Most organizations have seen more and more users accessing corporate information via a PDA and wonder how to manage e-mail, database access, and security.

We recommend that an organization that has reached a critical mass of PDA's (defined by Puma as >500 PDAs) should look to implement some type of management control. While a combined Puma/NetMind product is not expected until the 1st quarter of 2001, organizations considering a complete management solution for PDAs and WAPs should consider Puma Technologies as an alternative.

 
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