Synchronica buys Nokia messaging business
Synchronica (LON:SYNC, TSX:SYN) has announced it is acquiring Nokia's Operator Branded Messaging business.
Already a major supplier of next-generation messaging systems to mobile carriers operating in developing economies such as Latin America and Africa, Synchronica's latest deal gives it 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 addition of these contracts means that Synchronica will also acquire more than six million active end users.
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.
The proposed acquisition is judged a reverse takeover under AIM rules, which means that trading in Synchronica's shares is currently suspended.
"This acquisition marks a key milestone for Synchronica as we move closer to our goal of becoming the leading global player for next-generation mobile messaging," said Carsten Brinkschulte, Synchronica's CEO. "Nokia's successful and highly-complementary Operator Branded Messaging business will at a stroke transform Synchronica's scale, profitability and geographic scope."
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