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HP Acquired Bitfone in December 2006: What the Deal Involved

HP’s December 2006 Bitfone deal added enterprise software for over-the-air firmware updates and remote mobile-device management, but the cited sources do not disclose a purchase price or exact closing date.
From TheFinanceBase Team3 min to read
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HP said in its fiscal 2006 annual report that it agreed in December 2006 to acquire Bitfone Corporation, a privately held software and services company serving the wireless industry. Bitfone developed enterprise mobile-device-management tools, including over-the-air firmware updates. HP later described Bitfone as a recent acquisition focused on managing remote devices. The sources available do not establish the exact closing date or purchase price.

What HP acquired

Bitfone was not a consumer handset maker. It supplied software and services to wireless operators and mobile-device manufacturers. Its products helped those organizations update, provision, diagnose and manage phones remotely.

HP’s fiscal 2006 annual report described the December 2006 agreement as a pending acquisition. In remarks on May 8, 2007, HP Chief Strategy Officer and Chief Technology Officer Shane Robison referred to Bitfone as an acquisition HP had made recently and said it was “all about managing remote devices.”

What Bitfone’s software did

Firmware updates over the air

Bitfone’s mProve product supported firmware over-the-air (FOTA) updates. Operators and manufacturers could use it to deliver handset software updates remotely instead of requiring users to bring devices to a service location or install updates manually.

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Device management, provisioning and diagnostics

Bitfone’s Mobile Variance Agent (MVA) provided standards-based device-management capabilities. The reported use cases included provisioning devices, running diagnostics and managing the firmware-update process.

Customers and deployments before the acquisition

Organization Date Reported use
UK operator 3 February 28, 2006 Selected mProve as its OMA standards-based device-management solution for over-the-air firmware updates.
Kyocera Wireless June 12, 2006 Selected Bitfone’s device-management client suite for OMA device management and FOTA support on mobile devices.

These announcements describe enterprise deployments and partnerships, not a retail phone product. Bitfone’s customer base therefore consisted of organizations operating or building mobile devices rather than individual subscribers buying software directly.

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Timeline of the HP–Bitfone transaction

  1. December 2006: HP reported that it had agreed to acquire Bitfone in its fiscal 2006 annual report. The filing treated the transaction as pending.
  2. December 21, 2006: EE Times reported that Bitfone’s 134 employees were expected to join HP’s handheld business unit within HP’s Personal Systems Group. That figure is an employee count, not a purchase-price figure.
  3. May 8, 2007: Shane Robison described Bitfone as a recent HP acquisition focused on managing remote devices.
  4. 2008: HP published an mProve datasheet describing dynamic, over-the-air management for mobile devices.

What is—and is not—known about the deal

  • Established: HP announced an agreement to acquire Bitfone in December 2006.
  • Established: HP later treated Bitfone as an acquired business associated with remote-device management.
  • Not established by the available sources: the precise closing date.
  • Not established by the available sources: the financial terms or purchase price.

It is therefore inaccurate to attach a deal value or a specific completion date to the transaction without a stronger contemporaneous filing or announcement.

Why the acquisition mattered to HP

The deal added technology for a growing operational problem: keeping large fleets of mobile devices updated and functioning after sale. Bitfone’s capabilities complemented HP’s handheld-business activities by addressing software maintenance and remote administration rather than handset hardware alone.

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For wireless operators, remote firmware delivery could support controlled updates across deployed phones. For manufacturers, standards-based device management and diagnostics could help manage devices in the field. Claims about reliability, speed or market leadership in Bitfone’s announcements are vendor statements, not independent performance evaluations.

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Bottom line for readers tracking the transaction

HP agreed to acquire Bitfone in December 2006, bringing in enterprise software for over-the-air firmware updates and broader mobile-device management. By May 2007 HP characterized Bitfone as a completed, recent acquisition within its Personal Systems Group context. The public record cited here does not disclose the purchase price or pin down the closing date.

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