Nokia acquires Novarra for feature-phone focus

Nokia (NYSE:NOK) announced today it has acquired mobile Web browser company Novarra. The 11 year-old company, makers of the Vision browser, has a sweet spot in feature phones, a market that Nokia has been aiming to step up in emerging markets.

Novarra, which also provides analytics on its browsing activity, uses a technology that reformats compressed Web sites to accommodate phones that can’t display them in their native form. It also offers a oneWeb service that aggregates a bunch of Web 2.0 apps embedded in a singular Web page – something that many companies can claim to do today – but it is a feature Nokia could use to improve its browsing experience. Nokia is the world’s leader in smartphones, but its feature phone presence has been threatened by competitors such as LG and Samsung offering cheaper phones.

Nokia is best to utilize Novarra’s technology in emerging markets where mobile Internet penetration is becoming increasingly important. Here phones are often used as the primary connection to the Internet, and cheaper devices are necessary to become widely used.

Nokia said to expect a new service using the Novarra technology platform to be available later this year. It expects the acquisition will close in the second quarter of 2010.