Motorola Buys Mobile Software Maker

An exterior view of Good Technology Inc. headquarters is seen in Santa Clara, Calif., Friday, Nov. 10, 2006. Cell-phone maker Motorola Inc. said Friday, Nov. 10, 2006, it is buying Good Technology, which provides computing software and services for smartphones and other handheld devices. (AP Photo/Paul Sakuma) (Paul Sakuma - AP)

CHICAGO -- Cell phone maker Motorola Inc. said Friday it is buying Blackberry rival Good Technology Inc., a deal that should boost the prospects for its new Q device as consumer demand for e-mail phones explodes.

Financial terms were not disclosed.

The deal underscores efforts by the world's second-largest handset manufacturer to sell more business-oriented mobile devices. In September, the Schaumburg, Ill., company agreed to the $3.9 billion purchase of Symbol Technologies Inc., a maker of portable bar code scanners and customized handheld computers.

Motorola said Santa Clara, Calif.-based Good Technology, a privately held firm which provides computing software and services for the Treo and other smartphones, will join its mobile devices unit, which has flourished in the past couple of years thanks to the runaway success of Razr phones.

Ron Garriques, president of the mobile devices division, said Good Technology's services, products and customers all complement its business.

"This acquisition will continue to strengthen Motorola as a leading provider of mobility devices and solutions both for enterprise customers and consumers," he said.

Hoping to come up with another Razr-like blockbuster in the fast-growing smartphone category, Motorola introduced a QWERTY handheld device, called the Q, earlier this year to vie with the BlackBerry and the Treo, which also runs on Good Technology software.

Albert Lin, an analyst for American Technology Research, said Good Technology was probably the best available acquisition for Motorola in the category short of buying Research In Motion Ltd., the Canadian maker of the Blackberry.

"The Q has been somewhat disappointing and they're looking for ways to reinvigorate that product line," he said. "The next versions will be much more feature-rich."

The deal is likely bad news for Treo maker Palm Inc., Lin added. "The last thing they need is another challenger that is re-energized or has a better balance sheet behind it," the analyst said.

Good Technology, founded in 2000, originally offered its own handheld device but now focuses on software and services. Its GoodLink software provides handheld devices with wireless access to Microsoft's Outlook application.

The two companies have an existing business relationship, with Good Technology using Good Mobile Messaging on the Q.