Former Ericsson Microsoft executive joins Mobeon

STOCKHOLM -- Ulf Avrin, former CEO of Ericsson Microsoft Mobile Venture, has been named CEO of Mobeon, a leading provider of mobile messaging and personal information management (PIM) to GSM systems. The Mobeon product portfolio mPIM gives users the ability to access their company's e-mail, calendar and contacts from any wireless enabled device. It can also access documents stored within company information system. 

Mobeon's customers and partners include Ericsson, Vodafone, Motorola, Materna, Telenor and Mobistar (Orange). The company's business model is a carrier-centric, white label OEM strategy with a European focus, and the solutions are marketed globally in over 100 countries through their partners.

"With his thorough understanding of the industry and many years of experience within both Ericsson and Microsoft, Ulf will be an important addition to Mobeon", says Ulf Jonströmer, chairman and CEO of BrainHeart Capital. BrainHeart is a Stockholm-based multi-stage venture capital firm dedicated to investments in the wireless sector. The former CEO, Michael Mandahl will join BrainHeart Capital as a venture partner.

Mobile Internet market

"Currently the highest demand in the mobile Internet market is for PIM services and wireless access to company e-mail," Avrin said with the announcement of his new position. "Mobeon is one of the few companies with a well developed and thoroughly proven product. The fact that Mobeon technology was first launched into the market over three years ago and is now launching version 3.0, is an incredibly important factor for success".

Avrin said he believes that the biggest challenge for operators today is to get data applications that will create revenue and return on investment now, before the next generation of 3G cellular networks are in place. "It's all about developing and implementing solutions for operators so that they can increase value for end-users, by adding mobile data applications to their existing voice capability," Avrin said. "To be a key player and a prioritised partner to operators, Mobeon will continue to develop products that increase competitiveness, profitability and ARPU."

In April 2001, BrainHeart Capital purchased the mobile Internet operations of LINQ, which was then undergoing reconstruction. Mobeon was established through a takeover that was supported by the company's management and employees. Mobeon's head office is in Stockholm, while all product development is conducted in Gothenburg, Sweden.

BrainHeart investments

BrainHeart has invested in a number of "M2M" companies in Europe. M2M is variously defined as machine-to-machine, machine-to-mobile, mobile-to-mobile, machine-to-man, or man-to-machine. At BrainHeart, M2M generally means machine-to-machine. "M2M-communication is one of the sectors of the wireless IT industry we believe has greatest business potential in the future." said Sigrun Hjelmquist, investment manager at BrainHeart Capital.

For example, two months ago Wireless Maingate, a leading Scandinavian player in the M2M market, received SEK 80 million (US$7.8 million) from a new share issue to BrainHeart Capital and Catella.

"Maingate proved its competitiveness last year in a number of interesting deals. Its product offering combined with solid competence is an extremely good starting point for Maingate to strengthen its position as the dominating supplier in the M2M field," said Hjelmquist.

Maingate specializes in business-like communication with machines, apparatus and other equipment. The company offers customized communication solutions to customers like Vattenfall, Securitas Direct, the Swedish Post Office and Preem. 

Reinforce market position

"The new capital makes it possible for us to fulfill our plans to reinforce Maingate’s position as the leading player in the M2M market," said Anders Ericsson, president of Wireless Maingate. "The financing is enough for us to get a positive cash flow, which will be by the end of this year."

The new share issue made BrainHeart Capital the largest shareholder in Maingate by almost half of the stock. Catella Kapitalförvaltning is a new, additional shareholder. The other shareholders are MVI, Telia and the founders.

BrainHeart has funds will totalling €250 million (US$220 million), which is the largest sum in Europe focusing solely on growth investment in the wireless technology sector. Areas of interest include three segments in which portfolio companies complement each other: industrial wireless applications, virtual operators, and wireless Internet service providers (WISPs).