Synchronica Acquires Nokia's Operator Branded Messaging Business
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./Significant Increases to Revenue and Customer Base, Synergistic IP Portfolio and Highly Skilled Staff
Benefits of the Acquisition for Synchronica
Entry into the lucrative North American market with 10 live deployments including leading mobile network operators AT&T, T- Mobile, Verizon, Sprint, Rogers and Telus;
Accelerating Synchronica's transition to a recurring revenue- based business model with a revenue profile of more than 80 percent recurring, based on monthly payments per active user;
Large user base with more than 6 million active end users and strong up-side potential;
Assignment of 12 US patents and patent applications and a license for eight further patent applications owned by Nokia, expanding Synchronica's IPR portfolio in mobile Email and Instant Messaging;
Synergies from the combination of OBM technology with Synchronica's Mobile Gateway product, targeting a super-set of both products with enhanced functionality and increased efficiency;
Partnership with Nokia including a long-term contract for development and support of the Nokia Messaging Service for Nokia's Series 40 and Symbian handsets, with an expected revenue of approximately US$18.2 million over the next 18 months;
Large and highly skilled technical resources complementing Synchronica's expertise in development of next-generation messaging technology.
ROYAL TUNBRIDGE WELLS, United Kingdom, June 30, 2011 /CNW/ - Synchronica plc ("Synchronica" or "the company") (AIM: SYNC) (TSXV: SYN), the international provider of next-generation mobile messaging services ("the Company"), has conditionally agreed to acquire Nokia's Operator Branded Messaging ("OBM") business ("the Acquisition") for a total consideration of 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 respect of ordinary common shares in Synchronica.
In order to fund the Acquisition and to provide additional working capital for the enlarged group, Synchronica has signed agreements to raise US$15 million (gross) through a Placing, which will represent approximately 37.6 percent of the Company's enlarged issued ordinary share capital ("Enlarged Share Capital"). The Acquisition and the Placing are conditional upon approval at a general meeting.
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Synchronica will acquire the Nokia Operator Branded Messaging business, which enables mobile operators to deliver operator branded Email, Instant Messaging and Social Networking experience on mobile devices via an easy-to-use interface. MSN Hotmail
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E-mail, chat, & VoIP: MSN mail servers. - Read e-mail, chat, and VoIP discussions and get tips and advice on this topic and others on CNET Forums.