Openwave To Sell Cell-Phone Unit, Stock Jumps

Openwave Systems (OPWV), an early entrant into the market for smartphone software, announced this morning it agreed to sell the part of its business that develops Web browsers and other software that runs on cell phones. A French startup, Purple Labs, which is based in Le Bourget du Lac, and is developing Linux-based programs, will pay $30 million for the “client” business of Openwave, plus $2 million if “certain conditions are met,” and will give Openwave warrants to purchase up to 2% of Purple’s stock, Openwave said in a press release. Purple is funded by Sofinnova Partners, Earlybird Venture Capital, and Partners Group. Openwave will continue to develop “network-based” software, it said, which would seem to me programs that run on a server and communicate with the phones.

Openwave shares are up 10 cents, or 7%, on the news at $1.50.

For a nice roundup in everything that happened in smartphones last week, check out Eric’s Tech Trader column in this weekend’s Barron’s Magazine (subscription required).