Research In Motion Ltd.'s RIM-T BlackBerry devices have helped people send e-mail while riding a train and buy concert tickets while standing in line at a coffee shop, and has given MPs in Ottawa the ability to communicate with their staff during Question Period.
Soon the devices may help commuters avoid traffic jams on the ride home from work.
Yesterday, RIM acquired Dash Navigation Inc., a GPS car-navigation firm based in Sunnyvale, Calif., which is backed by some of the biggest venture capital finance firms in Silicon Valley, including Kleiner Perkins Caufield & Byers and Sequoia Capital.
Terms of the deal were not disclosed, nor did RIM executives and officials at Dash respond to requests for comment.
Dash is best known for its in-car GPS navigation technology. Until recently, the company produced a line of Web-enabled personal navigation devices and GPS mapping software, which were linked into its Dash Driver Network. The technology provides constant traffic updates to users' devices and can suggest alternative routes to avoid slowdowns based on information collected from other users on the network.
However, analysts say that Dash's growth was hampered because there weren't enough people using the service.
But if Dash's software were to be included on BlackBerry devices and the Dash Driver Network suddenly was able to draw real-time GPS information from millions of BlackBerry subscribers, the service could develop into a "killer app," said Carmi Levy, an independent technology analyst in London, Ont.
"Dash had an impossible business plan," he said. "What they were really trying to do was go head to head against established hardware vendors using a service that wouldn't have come into its own until they sold enough devices."
Dash abandoned its hardware business last November, opting to focus on developing its software for use on other devices such as smart hones, and laying off a sizable chunk of its work force in the process.
"Dash actually saw the writing on the wall and was moving toward a software model," said Charles Golvin, a technology analyst with market research firm Forrester Research.
RIM's purchase of Dash is further evidence that mobile manufacturers are looking to improve their GPS and mapping technologies, as an increasing number of consumers look for their smart phones to replace other standalone devices such as PNDs and digital cameras.
The deal comes just two days after Apple Inc. showcased its partnership with car navigation powerhouse TomTom NV at the computer company's WorldWide Developers Conference on Monday.
"RIM's timing is not coincidental - they're all going in the same direction," Mr. Levy said. "Your smart phone will increasingly take over from standalone PNDs."
Research In Motion (RIM-T)
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