Motorola Mobility Holdings Inc. (MMI) has agreed to purchase start-up firm 3LM Inc. for a price ranging from $6 million to $10 million, The Wall Street Journal reported Sunday. The deal, expected to be announced on Monday, will mark the first acquisition by the company after it was spun off from Motorola Inc. on January 4.
3LM develops software to improve the security of Android-powered mobile devices. It was founded in July by two former employees of Google Inc. (GOOG) who were part of the team that developed Android operating system.
The deal is expected to aid 3LM in capturing a bigger share of the business market that is being dominated by BlackBerry maker Research in Motion Ltd. (RIMM, RIM.TO).
Android software, licensed free, has become widely used in various devices, including tablet computers. Last week, handset maker Nokia Corp. (NOK) and software giant Microsoft Corp. (MSFT) announced a strategic partnership, whereby Nokia would adopt Windows Phone as its principal smartphone strategy. The deal is being viewed as an effort to take on challenges posed by Android.
MMI closed Friday's regular trade at $31.15, down $0.04 or 0.13%, on 1.8 million shares.
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