Buyer to Acquire Location Technology Assets of Kivera, Inc.
TeleCommunication Systems, Inc., a global leader in wireless data technology, today announced it has signed a definitive agreement to acquire substantially all of the assets of Kivera, Inc., subject to customary conditions to closing. Kivera brings to TCS leading, proven wireless and internet-based location application software, geo-data professional service contracts, relationships with marquee customers, and leading geographical data sources.
TCS expects to apply its leading wireless messaging and location technology expertise and its wireless carrier relationships to deepen and expand Kivera’s enterprise and carrier-subscriber solutions. Kivera is expected to have generated approximately $5 million of revenue in calendar 2004, and management expects the acquisition to make an accretive contribution to earnings in 2005.
Key assets acquired by TCS include:
Mobile Applications Platform – Kivera’s mobile platform and industry leading mobile applications are available to the more than 160 million U.S. mobile phone subscribers and are available on four of the top five wireless carriers in North America. Kivera’s technology is used by consumers and enterprises to save time, save costs, generate revenues, and save lives in applications ranging from emergency response and fleet optimization to enterprise and consumer wireless applications.
Core Intellectual Property – Kivera’s solutions are built upon its industry-leading location application engine and related software components. Kivera’s Location Engine™ provides the fastest and most accurate location services available according to independent tests. Kivera’s technology powers the first implementation of location service offered by a U.S. wireless carrier and has been critical to attracting and retaining data subscribers and increasing Average Revenue Per User (ARPU). Kivera’s Real-Time Traffic Server aggregates leading traffic data feeds from a variety of vendors and government agencies to enable the most accurate and comprehensive national traffic service available on websites and wireless handsets. Additionally, Kivera provides multi-platform software components for the creation of high-performance and graphically rich wireless applications on BREW, WAP, J2ME, and Symbian enabled wireless devices. Kivera has invested over 240 developer-years in its technology and solutions.
Marquee Relationships and Partnerships with Leading Customers, and Service and Content Providers – Kivera is a leader in the U.S. mobile applications market through its relationships with the leading wireless carriers including Verizon Wireless, AT&T Wireless, Cingular Wireless, Sprint PCS, ALLTEL, and Virgin Mobile. Kivera’s technology is also used to provide high-margin enhanced directory assistance services on all major carriers in North America through its relationships with BellSouth, VoltDelta INFONXX, Metro One Telecommunications, and Verizon LiveSource. According to The Pierz Group, the mobile US directory assistance market will approximately double in revenues over the next 5 years, from $1.8 billion in 2003 to $3.6 billion in 2008 (source: The Pierz Group’s report on its web site, The US Directory Assistance/Enquiry Market, Nov 1, 2003). Kivera is also a leader in the emerging Telematics market as a result of its strategic relationships with DENSO Corporation of Japan, and the American Automobile Association (AAA) and its affiliates. According to Strategy Analytics, telematic users in North America, Europe and Japan will increase from 3 million users in 2002 to 16 million users by the end of 2010 (source: Strategy Analytics report, In-vehicle Telematics Services Forecast 2003-2010, April 2004).
“Through our Xypoint® Location Platform (XLP) and our leadership in providing wireless enhanced 911 service using our XLP, our Company has been recognized as a technology leader in providing the ‘plumbing’ for location-based services, that is, capturing the X/Y coordinates of a wireless device and feeding them to an application. We see the Kivera team as a best-in-class application company, substantially enhancing the depth of our enhanced service offers to carriers, and the range of our capabilities for enterprise and government customers” commented Maurice B. Tosé, Chairman, President and CEO of TCS.
“Kivera is pleased to become part of the TCS family. As part of the TCS team, Kivera employees will be able to enhance and expand the services provided to existing customers, and continue their quest to become the leading provider of location-based services and technology in North America and beyond,’ commented Stuart Jacobson, President and CEO of Kivera.