www.synchronica.com
Synchronica plc is a global innovator in next-generation mobile messaging technologies. Its flagship product, Unity, been chosen by more than 100 of the world's leading mobile operators and OEMs to power their own-branded push email, instant messaging, and social networking services.
With leading features such as Unified Messaging, Geo Socialization, and RCS as a Service, Unity connects to any mobile device - from the most basic mobile phone, to high-end tablets - providing customers with a strong foundation on which to achieve market differentiation, diversified revenue streams, and reduced churn.
Headquartered in the United Kingdom, Synchronica maintains global research and development centres in Canada, Germany, India, and the Philippines. Synchronica's shares trade on the London Stock Exchange AIM market (SYNC) and the Venture Exchange of the Toronto Stock Exchange (SYN).
Synchronica shares to resume trading after co files document relating to Nokia business acquisition
Mobile messaging company Synchronica (LON:SYNC, TSE:SYN) will see trading in its shares restored today after it published the admission document relating to the proposed acquisition of Nokia’s Operator Branded Messaging business.
The takeover was announced last week and was classed as a reverse takeover, which under AIM rules requires shares in the acquiring party being suspended pending publication of an admission document which includes information on the acting company and on the proposed acquisition.
Already a major supplier of next-generation messaging systems to mobile carriers operating in developing economies such as Latin America and Africa, this latest deal gives Synchronica entry into the lucrative North American market. OBM’s customer list includes Tier-1 mobile operators across the US and Canada such as AT&T, Sprint, Verizon, T-Mobile, Bell Mobility, Rogers Wireless and others – all of whose contracts will be assigned to Synchronica.
The acquisition means that with more than 80 existing carrier contracts in Europe, Latin America, Africa, Russia and Asia, Nokia’s assignment of more than 10 operator contracts in North America gives Synchronica a total addressable market that will extend to 1.8 billion end users.
As part of the deal, Synchronica and Nokia will enter into a long-term relationship in which Synchronica will provide the messaging software which Nokia will continue to preload on Nokia Series 40 phones. Synchronica will assume responsibility for development, maintenance and support of the Nokia Messaging software shipping with millions of Nokia devices and the gateway functionality for both Series 40 and Symbian devices. Approximately 250 employees, externals and contractors are planned to transfer from Nokia to Synchronica.
The cost to Synchronica of acquiring OBM is US$25 million, with US$4 million payable in cash on completion of the acquisition and the balance being payable on a deferred basis. In addition, Nokia will be issued 18.3 million warrants in Synchronica’s shares.
In order to fund the acquisition, Synchronica is raising US$15 million through a share placing, which will represent approximately 37.6 percent of the company’s enlarged share capital.
Synchronica has called a general meeting for July 28 to seek approval from shareholders for the acquisition and the fundraising.
