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 receives firm offer from Swiss group - Update
- adds broker comment
Shares in mobile messaging group Synchronica (LON:SYNC) slipped back as Swiss rival Myriad unveiled an all share takeover bid.
Synchronica fell 1.67p to 10.58p as Myriad confirmed there would be no cash element in the deal.
The Swiss firm’s all-paper bid is worth 13p per share, valuing Synchronica at about £20.6 million.
A merger would have good strategic rationale, house broker Northland suggested today but the board of the mobile messaging firm advised shareholders to take no action.
Northland said a merger would provide a broader product platform, complementary operations and a number of customers in common.
Myriad’s stronger balance sheet (pro forma net cash of c.$25m) would also help Synchronica exploit the sales opportunity, the broker said.
Northland added Synchronica is also much less reliant on large licence sales now that there is a build-up in recurring revenue coupled with the recent cost reduction programme. It also has a supportive customer/shareholder in Nokia.
Myriad wants the offer recommended by the directors, but the UK firm said it had been unable to reach agreement with Myriad.
Two weeks ago the firm issued a bullish trading update stating it expected latest full-year revenues to be marginally ahead of market expectations.
Myriad said a merger would give Synchronica shareholders an investment in a company with a larger established base of installed products and a global spread of revenues.
It added that Synchronica had an obligation to pay deferred acquisition consideration to Nokia of approximately US$20.2 million before 31 December 2015 and does not believe in its current financial position and with its future prospects, Synchronica will be able to repay the Nokia debt.
Simon Wilkinson, Myriad’s chief executive said: "We view our all share offer as attractive to the shareholders of Synchronica.”
“It represents a significant premium to Synchronica's volume-weighted average share price in November and December 2011 and a compelling value proposition, affording Synchronica shareholders continued participation in a combinedbusiness that we consider will be a leader in mobile software technology, with an enhanced product portfolio and cross-selling opportunities.”
