Nokia Acquiring Intellisync, Pushing Back Enterprise Unit Profitability (NOK, SYNC, RIMM, PALM)

Nokia (ticker: NOK) announced today that it's acquiring mobile enterprise communications company Intellisync (ticker: SYNC) for $5.25 a share -- about $430 million. Intellisync had produced about $60m in annual revenue, but had yet to become profitable.

Nokia had previously stated its enterprise unit would become profitable in the first half of next year, but the Intellisync purchase will apparently push that back -- Nokia enterprise solutions head Mary McDowell:"We do think this acquisition will impact that, so we are now looking at a profitable 2007."

Intellisync's mobile e-mail solution may integrate nicely with the new Nokia 770 and E-series for business, a plus in NOK's effort to take market share from Blackberry (Research in Motion: RIMM) and Palm (PALM) in that lucrative sector .

NOK 1-year chart:

Related:

• Full Transcript of Nokia’s 3Q05 Conference Call — Prepared Remarks and Q&A.
• All Consumer Electronics Stock Blog articles on Nokia and on Cell Phones.
• 5 Reasons Why The Consumer Electronics Stock Blog is a Daily ‘Must-Read’