Phone.com and Software.com announced their merger in a stock pack worth $6.4 billion. The merger will create a global enterprise that will provide a broad range of carrier-class software to wireless and wireline carriers, portals, and Internet service providers. Each company will own approximately 50 percent of the merged company.

The combined company will be a provider of highly scalable infrastructure and application software, enabling the delivery of email, voicemail, unified messaging, directory, and wireless Internet access for IP-based networks. It is expected that the merged company will benefit from significant cross-sell and up-sell opportunities through existing relationships.

"Our customers will benefit from the combined company’s IP-based infrastructure, unified platform, and its unparalleled ability to operate across all standards," said John MacFarlance, CEO of Software.com.

The transaction is expected to close by calendar year-end 2000 subject to approval of Phone.com and Software.com shareholders and customary closing conditions. The name of the combined company will be announced at that time.