AIM-listed Synchronica, which provides mobile messaging services, has agreed to acquire Nokia’s operator-branded mobile messaging services in a deal worth a total of $25 million (£15.5 million).
AIM-listed Synchronica, which provides mobile messaging services, has agreed to acquire Nokia’s operator-branded mobile messaging services in a deal worth a total of $25 million (£15.5 million).
Nokia’s messaging business provides white label (re-branded) mobile email and instant messaging services to operators in North America. Synchronia plans to service operators including AT&T, Verizon, T-Mobile and Rogers.
According to a statement the purchase will provide Synchronica with a complementary mobile messaging business and foothold in the ‘strategically important’ North American operator market.
In order to fund the acquisition and provide additional working capital for the enlarged group, Synchronica is to raise $15 million through a placing. An initial $4 million is payable in cash on completion with the balance to be paid on a deferred basis.
Chief executive officer of Kent-headquartered Synchronica, Carsten Brinkschulte, says the deal is a ‘key milestone’ for the business as it moves closer to its goal of being a ‘global player’.
Brinkschulte adds: ‘Nokia’s complementary operator-branded messaging business will at a stroke transform Synchronica’s scale, profitability, and geographic scope.’
Synchronica currently has 80 existing carrier contracts in Europe and the rest of the world. Under the terms of the deal the British business and Nokia are to enter into a ‘long-term relationship’ under which Synchronica will provide messaging software to Nokia.
