Lightyear integrates Wherify LBS platform into existing services
Wherify Wireless Inc. will integrate its Springboard Location-Based Services platform into the wireless offerings provided by Lightyear Network Solutions LLC to better compete in the mobile enterprise applications space.
The Springboard LBS platform is designed to let wireless carriers, application providers and mobile device manufacturers deliver location-based applications for their subscribers.
"We knew Lightyear was heading in the direction of mobile and then they made the deal with Verizon, and that tied into our location-based software stategy," Doug Hajjar, Cape Cod, MA-based chairman and cofounder of Wherify. "We give them a step up in their competition with our Springboard LBS platform.
"We're excited about the merger and both companies are looking forward to doing business together," he said.
This announcement follows on the heals of Lightyear's recent agreement with Verizon Partner Solutions to resell wireless services.
Lightyear Network Solutions recently became the first to offer Verizon's new Wholesale Mobility Solutions suite to business and retail customers.
The availability of this suite of products will let Lightyear Network Solutions to bundle a variety of wireless voice, text messaging and mobile broadband services with the existing landline services offered to its more than 84,000 existing small and medium-size business and residential customers.
The integration of Wherify's GPS tracking capabilities and LBS platform into Lightyear's mobile phones will give the partners a unique marketing angle for their products geared toward its enterprise customer base.
"For Lightyear they're going to get the LBS software to put on their wireless products to their install base of 84,000 businesses and gives their clients, from truckers and delivery companies to restaurants, a mobile management tool to track their workforce wherever they are, redirect them as needed and be in constant contact with them," Mr. Hajjar said.
"Those mobile applications are few and far between in the U.S. marketplace, and Lightyear has already been contacted by new and existing customers asking when this LBS software will be available," he said.
As for Wherify, it will provide scale, reach, an existing client base and the promise of a dependable revenue stream.
As described in Wherify's 8K filing Aug. 14, the combined company is projecting revenues for calendar 2008 in excess of $61 million with projected growth to more than $75 million during 2009.
"From Wherify's perspective, we're merging with a stable, profitable, revenue-generating company," Mr. Hajjar said. "We're a small technology development company, and now with merger we have a base revenue of around $65 million so it's easier to get in the door and show what our technology really does.
"We're confident that once we show people what we have, the sale will be forthcoming," he said. "Lightyear will help us open doors we were unable to open on our own."
Wherify charges $100 for its branded mobile device and then $5 to $10 per month depending on usage and country of origin.
"We've made this technology affordable to the masses, which was never the case in the past," Mr. Hajjar said. "It's become very affordable for small and medium businesses and the consumer, which opens up whole new marketplace."
Applications that Wherify plans on launching soon include mobile shopping, letting users find the nearest Starbucks, supermarket, five-star restaurant or retail store, and family finder, letting users locate family members and talk back and forth.
"Mobile functioning as a personal safety and security device is a new area," Mr. Hajjar said.
Lightyear provides voice, data, and video telecommunications services to businesses and residential customers through a network of 3,300 independent agents and representatives throughout the United States.
In delivering its services, Lightyear partners with major carriers and telecommunications companies such as Verizon, AT&T, Level 3, Qwest, Sprint, Embarq, PAETEC, Sylantro, Cisco, Adtran, Voicecom, Iperia and Acme Packet.
Wherify Wireless provides location based services for fleet management, asset tracking, enterprise sales field service management, mobile social networking, personal safety, and mobile community search and shopping solutions in the U.S. through its proprietary Springboard platform.
Springboard supports GPS and non-GPS equipped devices and is compatible with GSM and CDMA technologies.
Both small and large businesses are increasingly demanding a tightly integrated platform that allows for the mobilization of business applications and processes.
A recent study by Gartner Inc. found that 50 percent of enterprises are interested in adopting a mobile platform capable of supporting multiple applications, managing devices and securing data and transport.
"LBS is a fairly embryonic industry, and people have been on the periphery trying to figure out how to turn it into a business," Mr. Hajjar said.
"We invented the first personal locator, and we've been doing location-based services for nine years, and now we can download our software into a cellphone, PDA, computer or fleet management device to provide location-based services," he said.
"No other company has been able to do that in this industry. Everyone projects that it's going to have this enormous growth and there's not much entrenched competition, so feel we can build this company in a short time with our existing technology."