RIM Sells Cloud Unit To Synchronoss; Pays $65M To Nokia

RIM Divests Cloud Unit To Synchronoss

 @DavidZie
on December 28 2012 9:40 AM
Blackberry Dec 2012 2
RIMM's Blackberry series. Reuters

BlackBerry developer Research in Motion (NASDAQ:RIM) closed the sale of its NewBay cloud unit to Synchronoss Technologies (NASDAQ:SNCR) for $55.5 million as part of its restructuring.

As well, the Waterloo, Ontario-based smartphone developer said it had paid Finland's Nokia Oyj (NYSE:NOK) about $65 million to settle their patent dispute.

Synchronoss, of Bridgewater, N.J., said it would use the former RIM unit based in Dublin to bolster its presence in Europe, where it has many customers, and to assist it with new service to Verizon Wireless, which is majority owned by Verizon Communications (NYSE:VZ). RIM had acquired NewBay for about $100 million in 2010.

Separately, RIM disclosed the payment to Nokia in a filing with the U.S. Securities and Exchange Commission. The two announced a long-term cross-licensing deal on Dec. 21 but didn't provide financial details.

Under CEO Thorsten Heins, RIM has fired most of its staff, closed facilities and hired two investment banks to assist with restructuring.

Shares of RIM rose 3 cents to $11.79 in Friday trading while those of Synchronoss rose 68 cents to $21.17.

Share this article