With the handset-based mobile resource management (MRM) market expected to grow significantly in the next several years, two companies, Xora and Gearworks, are merging to form the largest location-based mobile business application provider.
According to Frost & Sullivan, the MRM market is expected to grow to more than 5 million subscribers generating over $1 billion in recurring software revenue by 2015. Because of this, the timing of the merger couldn’t have been better, according to Frost & Sullivan.
“The Xora-Gearworks merger is exceptionally well-timed to give the company a pole position in the burgeoning market for handset-based mobile resource management solutions,” said Jeanine Sterling, senior industry analyst, mobile & wireless communications, Frost & Sullivan. “With the most extensive product offering, spanning off-the-shelf to customizable mobile applications, and the broadest carrier coverage in the industry, the new Xora’s capabilities are top-tier and should be highly valued by customers of all sizes, as well as by wireless carriers seeking to deliver such applications to their business customers.”
The new company is to take the Xora name and will include more than 16,000 subscribers. It will utilize partnerships with leading companies such as Sprint Nextel, Verizon, AT&T, Telstra, US Cellular, Cbeyond, and Procall.
“This combination brings together two recognized leaders in the industry that share a common vision and desire to bring powerful tools to businesses that want to improve their operational efficiency,” said Sanjay Shirole, co-founder &CEO of Xora. “By measures critical to our long-term success, including growth and diversification of revenues, product portfolio, channel partnerships and customer support capabilities, this merger is a big win not only for us, but also for the customers and partners of the new combined company.”
Venture investors, including Dawntreader Ventures, BlueStream Ventures, Split Rock Partners, and Rho Ventures, have pumped $8.5 million in additional equity into the company.
