Social networking giant Facebook frequently purchases smaller companies to add to its capabilities and programming repertoire. The most recent purchase made by Facebook is the purchase of a mobile data compression startup called Onvao. Facebook purchased the company in an effort to make Internet access more affordable.
Facebook announced the purchase on Monday. Onavo is an Israeli company that created technology allowing users to do up to five times more using their data plan without additional fees. The company also provides an analytics tool allowing iOS and Android users to keep track of how much data is used by each application on their smartphone.
A Facebook spokesperson said:
We expect Onavo’s data compression technology to play a central role in our mission to connect more people to the internet, and their analytic tools will help us provide better, more efficient mobile products
Facebook plans to continue operating the Onavo office in Israel with the office becoming the Facebook Israel location. Onavo founders Guy Rosen and Roi Tiger believe that an infrastructure providing sustainable free access to basic Internet services is possible.
The purchase reportedly cost Facebook between $150 million and $200 million. Onavo was founded three years ago and the company has announced that after the transaction closes it will continue to offer its mobile utility application as a standalone brand.
SOURCE: PC World