HiddenMind, AnyDevice merge

Earlier this week, Cary, NC-based HiddenMind merged with Atlanta-based AnyDevice. The combined entity, HiddenMind, will focus on the wireless data infrastructure market. By combining the achievements of both companies, the new HiddenMind can provide a more comprehensive solution for wireless, voice and wired services through an integrated platform on current and future mobile devices.

Ken Tyra, HiddenMind chairman and CEO, said Wednesday during an interview that he’d been laying the groundwork for this deal since Wireless 2001, the industry trade event held last March.

At that time, HiddenMind was demonstrating its platform for enterprise applications using the new Motorola i85s – a Java 2 Micro Edition-enabled handset currently being used by Nextel and SouthernLINC. Out of a possible 20 companies HiddenMind looked at over the next few months, Tyra said AnyDevice most closely complemented his company’s vision for the future.

Whereas HiddenMind had solely focused on disconnected solutions for wireless data, AnyDevice developed solutions for connected mode operation, Tyra explained. The combined entity now offers a 3-pronged approach that includes an integrated voice server, a disconnected client and a connected browser/server environment.

Although the functional synergies of the HiddenMind-AnyDevice merger are fairly obvious, its timing naturally leads to questions about industry consolidation. Two days after HiddenMind announced its deal to merge with AnyDevice, BulletIN.net, another Atlanta-based company, merged with New Zealand-based Jungle Drum Systems.

“The joining of forces with BulletIN will enable Jungle Drum to quickly accelerate the rollout of its applications and new enhancements, and will bring a richer offering of products and services to all our partners and customers, both BulletIN and Jungle Drum,” said Michael Buisson, BulletIN.net managing director.

The new entity will deliver instant messaging, dispatch, CRM and other enterprise-oriented wireless data applications.

Analysts have predicted for some time — even before the tech downturn began some months ago — that there were too many wireless data application developers, infrastructure providers and systems integrators.

The combined HiddenMind-AnyDevice now employs 91, and will keep offices in both current locations, in Cary, NC, and Atlanta.

“Technology mergers usually don’t work well,” Tyra said. “But we carefully planned this. We have complementary management teams. The space is somewhat overpopulated. Will it be resolved by consolidation? Or only by other companies dying out? The key in all deals is, when it’s done, is everyone motivated and do they have the tools to do the new job?”

Tyra acknowledged the industry environment his merger takes place within, but emphatically stated that his was a merger of equals that occurred not because one partner in the deal was financially unstable. HiddenMind, a private company, chose not to disclose actual revenue figures. But Tyra said 2001 revenue would be approximately $7-10 million; 2002 revenue should approach $20 million.

Tyra stated that HiddenMind, which received its venture capital from Warburg Pincus Funds, maintains a healthy operating balance and would attract additional investment.

By merging the companies now, Tyra said he is staying ahead of the curve.

“Where is the puck going?” he asked, quoting the legendary hockey player. “(Wayne) Gretzky never asked where the puck was. He asked where it was going.”