Synchronica provides mobile push email and synchronization services to any mobile device around the globe. We're proud that our mobile synchronization and email software is built entirely on open industry standards, offering mobile services that are cost-effective, reliable, and accessible to all.
The award-winning product portfolio includes the flagship product Mobile Gateway, providing push email, synchronization, instant messaging (IM), backup and restore, and mobile connectivity to social networks. Synchronica's products are white-labeled and offered by mobile operators in emerging and developed markets to provide mass market messaging services, increasing data revenues and reducing churn.
Synchronica highlights strong support for iseemedia deal
Synchronica (LON:SYNC) believes that the proposed iseemedia (TSX-V: IEE) acquisition will position the company as a market leader for next-generation mobile messaging.
On completion, Synchronica will have 44 of the world's mobile operators as customers and a total addressable market of 853 million subscribers.
The company told investors that it has received strong support for the proposed iseemedia takeover, with 66% of the offer now tendered. The company acknowledged that it has exceeded the threshold condition, which required more than 51% of the iseemedia shares to be tendered.
Alongside the acquisition, Synchronica plans to raise C$7.5m through a placing.
"We are encouraged by the higher than expected support for the acquisition from new and existing investors in both markets and the strong support of iseemedia shareholders for our take-over bid,” Synchronica Chief Executive Carsten Brinkschulte said.
“iseemedia perfectly complements our existing competencies, specifically the patent-pending document transcoding technology, and the additional contracts with large mobile operators in India, which will accelerate our traction in the second largest mobile market worldwide."
He added: “This acquisition is a key step towards our goal of achieving a market-leading position in the fast-growing emerging markets.”
Synchronica has extended the takeover schedule, and iseemedia shareholders now have until 5:00pm (in Toronto) on September 14th 2010 to accept the deal. Additionally, Synchronica expects to have a listing on the Toronto Stock Exchange by the 14th September, and the placing will be closed concurrently.
Although the sale of iseemedia’s RealBiz subsidiary is no longer a condition to the takeover - after the companies amend the original offer last month - a binding letter of intent has now been signed for the disposal.
Synchronica highlighted that the sale is likely to be completed before the takeover completes.
The two-part equity financing will carried in both the UK and Canada, led by Northern Securities in Toronto and finnCap in London. Through the placing, the companies will issue units consisting of one share and one three year warrant.
Northern Financial Corporation (TSX:NFC), Northern Securities parent company, has committed to at least $3m, as long as Synchronica acquires at least 51% of iseemedia’s shares - it has already tendered more than this.
In Canada, the iseemedia Units have been priced at CAD $0.09, and the exercise price for the warrants will be set at C$0.12. The Synchronica units in the UK are being priced on equivalent terms, with units being priced at 1.45p and the warrants will have a 1.93p exercise price.
The pricing assumes the exchange rate to be GBP 0.64803 = CAD $1.
Yesterday, Synchronica confirmed that its shareholders approved the issue of the new equity required to complete both the acquisition and the associated fundraising, at Tuesday’s general meeting. Consequently, a 1 for 15 share consolidation has now taken place.
