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Smith Micro Software Makes Silicon Valley Buy

Aliso Viejo’s Smith Micro Software Inc., a maker of software for wireless phones, said Monday it agreed to buy Core Mobility Inc. for $10 million in cash and stock.

Core Mobility, a Mountain View-based maker of smart phone software, is set to operate as a subsidiary of Smith Micro.

The deal, expected to close by the year’s end, could amount to more if Core Mobility reaches certain sales and product development goals.

Core Mobility’s software that does back-up and data synchronization, visual voicemail and runs “push to talk” features on smart phones.

“We expect that Core Mobility’s technical excellence, innovative product offerings and sizable patent portfolio will be a great complement to our existing technologies and industry-leading mobility software portfolio,” said Chief Executive Bill Smith. “This acquisition will add depth to our engineering capabilities for handheld client software.”

Smith Micro has recently been pushing “connection manager” software that runs on a PC or mobile device and allows for a wireless connection to the Internet through a wireless service provider’s network.

It simplifies the process of connecting a device to a wireless network by cutting down setup time and having fewer steps.

The company also makes security software and software that does “over-the-air” downloads for music.

Customers include Verizon Wireless, a unit of New York’s Verizon Communications Inc., AT & T; Inc., and T-Mobile USA Inc., a unit of Germany’s Deutsche Telekom AG, among others.

Smith Micro’s shares are up more than 100% since the start of the year on a recent market value of around $400 million.

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