International Digital Holding, Inc. (Nasdaq: IDIG) was up 1/2 in early trading today after announcing that its Pilot Island division will work with eConnect eConnect (Nasdaq: ECNC) on a venture that will allow users of PalmPilots and other handheld Internet devices to make electronic transactions.
“This technology will allow the user the convenience of making payments for just about anything, while simultaneously improving security and lowering transaction costs,” said eConnect President Tom Hughes. Econnect shares were up 1 13/16 at 6 15/32.
The two companies will split profits — which will come from individual transaction fees — equally. Econnect will provide development funds and transaction servers, with Pilot Island contributing technical and engineering expertise, the companies said. Testing is expected to begin in the third quarter.
Separately, International Digital said it canceled an agreement to acquire Castleridge Management Services Ltd. because of “business-related differences.”