Research In Motion Sells NewBay Subsidiary to Synchronoss for $55 Million

Waterloo-based Research In Motion has sold its NewBay services subsidiary to a compnay named Synchronoss Technologies because RIM believes it isn’t a core component of the next-gen BlackBerry product portfolio.

NewBay, which was acquired in October 2011 by RIM, provides Internet services that allow customers to store and share content and data through smartphones and tablets. The deal was done when Jim Balsillie and Mike Lazaridis were at the helm, so it’s no shock that Thorsten Heins held a different opinion about the subsidiary’s usefulness to RIM.

“As we execute our transition and seek to save over $1-billion in operating costs, we have taken the decision to divest NewBay as it was not deemed core for the BlackBerry product roadmap in the future,” RIM said in a statement.

Synchronoss paid $55 million. RIM shares are up 1% on the news.