iPass to buy GoRemote

Virtual enterprise network operator iPass announced an agreement to acquire GoRemote Internet Communications in an all-cash transaction valued at about $76.5 million.

While iPass primarily serves roaming mobile users such as salespeople and business travelers, GoRemote can bring more remote workers that iPass does not already serve directly, including teleworkers and employees in home offices, branch offices and retail locations. GoRemote’s worldwide enterprise customer base, which includes Forbes Global 2000 companies such as Novartis, Merrill Lynch, Schering-Plough and Bridgestone-Firestone, complements iPass’ existing roster of enterprise customers, which includes 276 of the Forbes Global 2000, the companies said.

“The acquisition will enable the combined company to accelerate GoRemote’s current plans to penetrate new market segments by providing secure managed broadband services for retail locations and branch offices,” said Tom Thimot, GoRemote’s President and CEO, in a statement. “The combination of iPass and GoRemote also creates an attractive opportunity to cross-sell iPass’ endpoint security and systems management services into GoRemote’s installed customer base. GoRemote’s technology will position iPass to better serve home and branch offices that are expected to utilize emerging wireless broadband and mesh networks in the future.”

Ken Denman, chairman and CEO of iPass, added, “As broadband access to the Internet becomes more secure, reliable and affordable, enterprises are shifting from private networks to Internet-based communications and demanding that all of their remote and mobile Internet access be unified into a convenient and universal service. This acquisition will position iPass to deliver this value to the enterprise market.”

In October 2005, IDC estimated that the mobile workforce will increase from 650 million worldwide in 2004 to more than 850 million over the next five years, and that mobile workers will represent more than one quarter of the global workforce by 2009.

The management teams are developing an integration plan, and iPass said it expects the acquisition to close sometime in the first quarter of 2006. iPass has made two other acquisitions in the past 12 months--Mobile Automation and Safe3w. In addition to eliminating redundant positions, iPass plans to convert GoRemote to its lower-cost infrastructure, systems, architecture and processes, according to iPass.