Hikari Tsushin Invests $29.5 Million in Pixo

Japan's largest mobile phone distributor, Hikari Tsushin Inc. (Tokyo, Japan), has invested $29.5 million in Pixo (Cupertino, CA). Hikari's investment is the largest made in a strategic partner to date, and the collaboration positions both firms to develop and deliver new and compelling mobile commerce applications for wireless markets in Japan and the rest of Asia.

As part of the investment agreement, the two companies will undertake a joint venture in Japan to provide wireless Internet services and products to consumers. Development efforts will focus around Pixo's HTML-based microbrowser technology and the content and services that it will enable. Unlike a WML-based browser, the Hikari-Pixo browser will be able to access virtually any HTML-based content on the Web and instantly reformat the content for effective presentation on a wireless phone display. This will allow Hikari to leverage the entertainment, sport, and lifestyle content of its existing Club Hit wireless content, as well as other mobile commerce sites and transactions.

Hikari's investment in Pixo makes it Pixo's largest single shareholder. Pixo's other shareholders include Conexant Systems Inc., Altos Ventures, Bay Partners, and Communications Ventures. Hikari also holds investments in Phone.com and in Tumbleweed, a developer of Internet document delivery technologies.

Edited by Ellen Jensen