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Motorola goes Starfishing
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July 14, 1998: 6:22 a.m. ET
Company acquires Starfish Software to bolster communications business
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NEW YORK (CNNfn) - Motorola Inc. has agreed to acquire closely held Starfish Software Inc., a move designed to bolster Motorola's floundering communications business.
Under terms of the deal, announced late Monday, Starfish will be an independent, wholly owned subsidiary of Motorola (MOT).
Financial terms weren't disclosed, although people familiar with the deal reportedly said it is worth several hundred million dollars.
Starfish Chairman and Chief Executive Officer Philippe Kahn will join Motorola as the president of Starfish. Kahn made his mark in the computer industry by building Borland International Inc. into a major software player that at one time was a serious rival to Microsoft Corp. (MSFT).
Borland changed its name to Inprise Corp. (INPR) in April.
Motorola is banking on Starfish to help increase revenue for its struggling communications businesses. Last week, Motorola announced it was consolidating all of its communications businesses into a single unit.
Starfish, based in Scotts Valley, Calif., makes software for mobile computing and communications devices. It's best-known product is Rex, a credit-card sized device sold by Franklin Electronic Publishers that stores contact and calendar information.
Starfish also supplied software to Motorola, which already owned a small stake in the company.
Motorola (MOT) shares gained 3/16 to close at 52-3/16 in Monday trading. 
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