Both NewNet and Traxcom are owned by Skyview Capital, a Beverly Hills, Calif.-based investment firm that specializes in the technology sector.
NewNet (Shelton, Conn.) focuses on mobile messaging and signaling infrastructure solutions for all manner of networks, while Traxcom (Schaumburg, Ill.) – which processes over 1.5 billion transactions each month – concentrates on secure transaction processing and advanced encryption.
The deal is expected to bolster the security of NewNet’s electronic and mobile commerce platforms via Traxcom’s Secure Access product portfolio, which provides security such transactions through its encryption technology.
“Mobile connectivity has revolutionized the lives of people globally and we are pleased to have provided enabling technologies to hundreds of customers over the past two decades” said Ron Pyles, president and CEO of NewNet. “The addition of the robust Traxcom product line enhances NewNet’s ability to expand our contributions, empowering our global customers to deliver new innovative services and develop new revenue opportunities.”
Prasad Kallur, NewNet’s executive VP for business development added: “Mobile payments are currently growing at a triple digit rate and, according to a recent industry report, are expected to reach $1.1 trillion globally by 2014. With the addition of Traxcom’s industry leading solutions and the soon to be announced next generation Secure Access products, NewNet will be poised to expand its role in this important space.”
NewNet said, in a press release statement, that all Traxcom employees would stay with the company. Additionally, Traxcom’s GM, Angela Ledford, will become NewNet’s executive VP for operations.