Aether acquires Cerulean Technology

Wireless data company Aether Systems, Inc. (Owings Mills, MD) has signed a letter of intent to acquire Cerulean Technology Inc. (Marlborough, MA), a leading provider of wireless mobile software in the public sector. The acquisition allows Aether to enter new vertical markets in the public sector by delivering advanced wireless products and services to the mobile government marketplace. Based on industry research reports and U.S. Bureau of Labor statistics, the market for mobile data products across the government represents an estimated 3.7 million users and over $1 billion in products and services by 2003.

The letter of intent provides for a purchase price of $150 million, up to 50% of which may be payable in Aether stock. The acquisition is subject to board approval, negotiation of definitive documentation, satisfactory due diligence, and regulatory approvals. The letter of intent provides for execution of definitive agreements by August 25, 2000, and Aether expects the acquisition to close in the next six to eight weeks.

"Aether looks for three valuable resources in its merger and acquisition strategy: entry into new vertical markets; a recurring revenue model; and engineering bandwidth. The acquisition of Cerulean brings us all three of these crucial elements," said Dave Oros, Aether Systems chairman and CEO.

By combining forces with Aether, Cerulean will be able to extend its industry-standard product line with new handheld products and Web-based services.

"As the public safety mobile market evolves beyond in-vehicle laptops to handheld devices, more customers are looking for packaged systems that incorporate the application software, devices, airtime and ongoing support in a turnkey solution for a monthly fee," said Bob Badavas, Cerulean CEO. "As part of Aether, Cerulean will be able to more easily meet this demand by offering hosted data services, managed through Aether's network operations center. By combining our companies, public safety agencies and the broader world of mobile government will continue to blaze new trails as wireless data enters the next phase of its evolution."

Rise of mobile government
Public safety agencies have been the early adopters of wireless mobile technology, driving the marketplace to refine and improve mobile technology products. Having seen the productivity, economic, safety, and community relations benefits derived from deploying mobile technology, other government agencies are beginning to adopt wireless mobile computing, fueling a movement towards a "mobile government."

Other government sectors that are beginning to employ mobile devices to receive real-time information wirelessly include public works, municipal services, health and human services, courts and corrections, and municipal utilities. Examples of the types of real-time, wireless applications required to deliver on the promise of mobile government are:

• Dispatch information access
  
• Remote data access
  
• Field data collection and reporting
  
• On-site inspections
  
• Scheduling and personnel management

With Aether's resources, Cerulean will develop and gain access to applications that address the needs of all mobile government across federal, state, and local levels. The combined entity will leverage the strength of Aether's mobile and wireless technology products and wireless hosting and consulting services and Cerulean's wireless mobile applications.

Edited by Ellen Jensen
Managing Editor, Wireless Networks Online