UK mobile tech firm Synchronica has acquired Nokia’s operator branded messaging division in North America for US$25m in cash.
The deal will see Synchronica snap up control of messaging infrastructure for ten US operators, including AT&T and Verizon,…
UK mobile tech firm Synchronica has acquired Nokia’s operator branded messaging division in North America for US$25m in cash.
The deal will see Synchronica snap up control of messaging infrastructure for ten US operators, including AT&T and Verizon, while supporting Nokia’s stated goal of divesting non-core assets.
It is currently subject to regulatory and shareholder approval, but both companies expect to close the transaction in Q3 2011.
Speaking to TelecomFinance, Synchronica CEO Carsten Brinkschulte said that, as well as buying a business that is complementary to his own, the deal includes access to important patents concerning mobile email and instant messaging technologies.
The two companies have also entered into a “long-term relationship” for the continued development of Nokia’s messaging service, said Brinkschulte
To finance the planned acquisition, Synchronica has secured commitments to raise US$15m through a private placing, which will represent around 37.6% of its enlarged ordinary share capital.
In a stock exchange filing, the company stated: “In total US$15m before expenses will be raised from the issue of up to 59,054,031 new ordinary shares at 16p per share (C$0.25 per share) and the issue of 29,527,015 warrants to acquire new ordinary common shares in the company.”
“A general meeting of the company will be held in the last week of July 2011 for the purpose of asking the company’s shareholders to approve the acquisition and related resolutions.”
As part of the planned acquisition, the group also intends to issue Nokia with 18.3 million warrants to acquire Synchronica shares within three years.
According to its website, AIM-listed Synchronica currently has 97,161,058 shares in issue. Its main shareholders include Fidelity International (9.55%), Den Norske Bank (4.95%) and Lanstead Partners (4.91%).
