Last year was not kind to 724 Solutions Inc. Its stock plunged from a high of $240 a share in March to a bit less than $16 at yearend. But 724 expects it will be luckier this year.
In mid-January, 724 purchased wireless software company, Tantau Software. Both Toronto, ON-based 724 and Austin, TX-based Tantau, offer wireless software applications for online banking, brokerage and mobile commerce. Tantau has focused on providing software for mass transactions; it had been part of Tandem Computers, which had been acquired by Compaq. In contrast, 724 has been more of an application service provider and content provider of secure mobile banking and mobile commerce services."It's a good move for both parties," says Ed Kountz, senior analyst for mobile financial communications at Needham, MA-based TowerGroup. "Their strengths are complementary. Smaller firms also will need to pair up if they want to compete."