Business Guide Land

Safran has made a deed with French business enterprise capital firm Sofinnova Partners for the divestment of its cellular phone business. By the deal Esmertec AG has agreed to sign a contract with Sofinnova and Safran to get the ownership of Sagem Mobiles software platform activities. As part of the agreement Sagem Mobiles will keep on its business before the transaction is done.

Now, Sofinnova is looking for making a new cellular phone original design manufacturer company to develop as well as expand its product and to market these products under other manufacturers or the new brand names.

By the agreement Sofinnova will keep maximum stake. On the other hand, Safran will preserve around10 percent and they decide new company will be called Sagem Wireless. The company will work for mobile phone personalization as subcontract. And it will also operate for packaging operations to the Safran plant in Fougères. It will have around 70 employees at Cergy-Pontoise in Paris and 240 employees at Ningbo in China. They will work for the development of its software platforms with Esmertec and Purple Labs at Le Bourget du Lac in France. Purple Labs provide a complete Linux software suite as a customizable software solution to the wireless industry packaged. It offers full hardware with software reference design as well.

The company selects Pasquale Pistorio as the chairman of Sagem Wireless. He was former president along with CEO of STMicroelectronics and he was also former chairman of Telecom Italia. On the other hand Sofinnova is a shareholder of two companies. So Sofinnova will transfer 250 workforces from Sagem Mobiles R&D department for new company.

On the other hand, Esmertec provides Java in-device engines along with cellular phone services platforms. The new compnay provides high growth in Esmertecs business by increase consumer relationships through supplementary products as well as services ahead of Java in-device engines. It ought to offer a great opportunity to promote the soaring growth segment of voice-centric cellular phones with the getting hold of platform already installed in millions of cell phones of users. Moreover, it will offer a considerable expansion of Esmertec’s IP with patent base. It also make able the company’s mid- and long-term plan, policy and strategy to make longer its footprint in (cell phone) software stacks by making unite a mature software platform and a flexible with upcoming substantiation Java middleware as well as application layer to provide the future mobile phone convergence as well as consumer electronics goods business.