MONTREAL - Nokia Corp. is acquiring OZ Communications, a privately held provider of mobile-phone email and instant messaging services with about 220 employees based in Montreal.
The terms of the transaction were not disclosed Tuesday.
OZ has been working with the Finnish multinational cellphone giant since 2003, and "joining forces at this point is a natural extension of our partnership," stated Jim Knapik, president and CEO of OZ.
"We are excited about taking OZ's solutions to consumers worldwide by leveraging Nokia's devices and distribution scale."
Niklas Savander, head of Nokia's services and software business, said OZ's team and technology will help Nokia address the fast-growing consumer messaging market.
OZ claims 5.5 million monthly paid users, providing quick and easy access to leading instant messaging and email services by working with mobile operators, handset manufacturers, portals and online communities.
Among users of its technology, in addition to Nokia, are Alcatel Lucent, Bell Mobility, AT&T, Microsoft, Motorola, Palm, Rogers Wireless, Samsung, SonyEricsson, Sprint Nextel, Telus Mobility, T-Mobile, Verizon Wireless and Virgin Mobile USA.
The Nokia takeover was welcomed by Wellington Financial LP of Toronto, a private finance firm which in April provided a $10-million debt financing commitment to OZ for product development and working capital purposes.
Mark McQueen, CEO of Wellington Financial, took the opportunity to state that "despite what you might read in the media about tightening credit, we have capital available right now for good companies."
Wellington Financial, controlled by Clairvest Group Inc. (TSX:CVG), is currently deploying $400 million, providing loans of up to $60 million.
