RIM buys NewBay in $100m deal
IRISH SOFTWARE firm NewBay has been acquired by Canadian smartphone maker Research in Motion in a $100 million deal.
NewBay staff were informed of the company’s purchase by the Blackberry maker yesterday.
It is understood that RIM intends to keep NewBay’s software development centre in Dublin, which employs about 200 staff. It will be the first facility for the Canadian firm in Ireland.
NewBay develops software for use on mobile phones which enables users to create and share digital content such as pictures and videos, as well as updating social networks.
It signed deals for its software with a number of major networks including T-Mobile USA, Deutsche Telekom, Telefónica O2, France Telecom Orange, US Cellular, ATT, Telstra and Verizon.
At the Mobile World Congress conference in Barcelona earlier this year, it announced a deal with electronics maker LG to have its software pre-installed on certain devices. The company says its flagship LifeCache software is used by 80 million subscribers worldwide.
Paddy Holohan, a former executive at Baltimore Technologies, founded NewBay in 2002, and a number of other former senior Baltimore executives joined him at NewBay.
The company was financed by venture capital firms Balderton Capital and Fidelity Ventures.
Barry Maloney, a partner in Balderton, and Simon Clark, from Fidelity, sit on NewBay’s board.
Paul McKeon, chief executive of software company Propylon, is also a shareholder and board member.
Last year, NewBay raised an additional €3 million in working capital from Silicon Valley Bank and corporate financiers Kreos Capital.
The most recent filed accounts show that NewBay had revenues of €18 million in 2009, up from €15.8 million a year earlier. It recorded a net loss of €2.7 million in 2009, compared to €1.9 million in 2008.
In addition to its Dublin facility, NewBay has offices in the US, UK, Germany, Australia and South Korea.
Mr Holohan is an investor and adviser to a number of Irish start-ups including Asavie, which provides remote access to corporate systems, where he sits on the board.
NewBay executives did not return calls for comment last night. RIM’s office in the US did not respond to an e-mail.