Telecom firm buys Odigo

Comverse, a division of telecommunications software maker Comverse Technology, on Monday said it has signed a deal to acquire instant messaging provider Odigo for $20 million in cash. Comverse previously held a 12.4 percent stake in Odigo that it had acquired for $3 million last year.

The company said the acquisition supports its effort to provide open messaging services. Comverse makes software including voice mail systems, wireless instant messaging and prepaid wireless services. New York City-based Odigo provides an application that enables people to chat with friends using other instant messengers, including Yahoo Messenger and America Online's AOL Instant Messenger and ICQ. Analysts say the acquisition could help Comverse long term, but Robertson Stephens analyst Marianne Wolk said in a report Tuesday that its affect on Comverse's revenue and earnings should be "nominal" over the next few quarters.