Jae C. Hong
Shares in Research in Motion popped up on Wednesday after the BlackBerry maker confirmed it has acquired California-based Cellmania, which produces software to manage virtual application stores and their content.
Cellmania operates online software application stores for a number of wireless carriers globally and is expected to help RIM improve its BlackBerry App World, which has been less popular with consumers than app stores maintained by Apple and Google for their devices.
RIM shares bounced up almost three per cent, or $1.44, in late morning trading on the Toronto Stock Exchange to $51.38.
Financial terms of the deal weren't released but Research In Motion (TSX:RIM) said Cellmania is bringing its expertise in application storefront development to the BlackBerry platform.
PC Magazine analyst Sascha Segan said Cellmania has strong billing and backoffice relationships with carriers and credit card companies.
"By acquiring Cellmania, RIM could make it much easier for BlackBerry owners to charge app purchases to their wireless bills seamlessly," Segan said from New York.
"It becomes a much faster process to buy something, which has always been a problem with (BlackBerry) App World," he said.
RIM launched its software application store almost two years ago to help make it competitive with Apple, among others, giving customers a place to buy applications such as games, maps and restaurant locators.
Cellmania announced on its website that it had been acquired by RIM late Tuesday.
"Cellmania is excited to announce that our company is now part of Research in Motion," the company's website said Tuesday.
"Our team has joined RIM's global organization and will continue to bring our expertise in application storefront development to the BlackBerry platform."
Segan noted that Cellmania also has software to improve billing and metrics for software developers.
"What it means, basically, is that developers will get money more quickly from RIM, they will be able to see the trends in purchases. RIM will be able to smooth the path collecting money from users and getting it to developers," said Segan, managing editor of PCMag Mobile.
RIM is also rumoured to be shopping for a mobile advertising network that would provide ads to go on software applications that consumers would buy for their BlackBerry smartphones.