IT Mergers & Acquisitions

Sybase, Inc., provider of enterprise infrastructure and mobile software, today announced that it completed the acquisition of Mobile 365, Inc. in an all-cash transaction valued at $417 million. Net of acquired cash, the transaction is valued at $397 million. Mobile 365 will now operate as Sybase 365, a wholly-owned subsidiary. Marty Beard, senior vice president of corporate development and marketing for Sybase, Inc., will lead the new subsidiary as president. The Sybase mFolio business will be integrated into Sybase 365 immediately, and certain assets of Sybase AvantGo will be integrated into Sybase 365 early in 2007.

Sybase 365 is global provider in mobile interoperator messaging — including SMS, MMS and IMS — delivering more than 3.5 billion messages per month. Through its extensive network of approximately 700 mobile operators, including Verizon Wireless, Vodafone, T-Mobile, Cingular, Telefonica and China Mobile, Sybase 365 will continue to focus on enabling the world’s leading content providers and global brands, such as Citibank, Yahoo!, AOL, MSN and Twentieth Century Fox to mobilize their content and applications.

For Sybase consolidated operations, management expects 2007 revenues to reach approximately $1.02 billion, which includes Sybase 365. For the 2007 full year, Sybase 365 is expected to generate revenue in the range of $120 to $125 million, including the contributions from mFolio and certain assets of the AvantGo business. Inclusive of Sybase 365, full-year 2007 fully diluted EPS is estimated to range from $1.50 to $1.52 on a pro forma basis and from $1.01 to $1.03 on a GAAP basis. Management expects the pro forma tax rate for 2007 to be 33% and the GAAP rate to be 36%.

Management expects the acquisition to be accretive to pro forma EPS by the fourth quarter of 2007. The 2007 full-year cash flow from operations is expected to range from $185 to $190 million.

Pro forma amounts exclude amortization of certain purchased intangibles, stock-based compensation, and restructuring costs. Accompanying this release is a reconciliation of projected pro forma and GAAP amounts for the full year 2007.