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Handspring goes wireless
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December 26, 2000: 5:48 p.m. ET
Handheld-computer maker plans to buy BlueLark for up to $22 million in stock
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NEW YORK (CNNfn) - Handheld-computer maker Handspring on Tuesday said it plans to buy Bluelark Systems, a provider of mobile Internet-access technology.
After Tuesday's closing bell, Handspring (HAND: Research, Estimates), whose "Visor" line of handheld computers competes against the popular "Pilots" from Palm (PALM: Research, Estimates), said it would acquire the privately held company in exchange for as much as $22 million.
The companies expect to complete the transaction before the end of the first quarter.
Under the terms of the deal, Handspring has agreed to give Bluelark Systems 430,000 of its shares. If at the time the deal is set to be closed the total amount of such a swap falls below $22 million, the company will raise that number to as much as 450,000 shares, according to Handspring spokesman Allen Bush.
Based on Tuesday's closing price, such a deal would be valued at roughly $16.1 million.
 By taking Bluelark Systems into its fold, Handspring, which is based in Mountain View, Calif., is aiming to expand the range of Internet content Visor users can access wirelessly.
Bluelark, which employs 11 people, also has its headquarters in Mountain View. It specializes in technology designed to enable access of Internet content on mobile devices. Its technology is applied both on the servers that deliver the content as well as the devices on which it is received.
Its customers include device manufacturers, wireless Internet service providers, carriers and corporations.
All of Handspring's products are equipped with an expansion port and a technology the company calls its "Springboard" platform, which enables users to expand their software and hardware.
So far, the only wireless offering for Handspring's Visor devices is a module that snaps on and effectively turns it into a fully functional wireless phone. With Bluelark's software and infrastructure, Web browsing will become a key application for Handspring products, Bush said.
For its part, Palm offers its customers wireless Internet access with its Palm VII devices. However, the content is limited to providers who provide it in a special format called "Web clippings."
Bush said Handspring's offerings "will go well beyond that."
Bluelark's handheld Web browser, called Blazer, is designed to access Internet content in a variety of formats, including hypertext markup language, which makes up the vast majority of Web pages.
Handspring intends to include the Blazer Web browser with its wireless phone add-on beginning next year, Bush said.
Shares of Handspring fell 19 cents to $35.88 in Nasdaq trade ahead of the announcement. They were down another 88 cents at $35 in after-hours activity. 
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Handspring
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