Synchronica plc Acquisition of iseemedia Inc.
September 17 2010 - 9:53AM
PR Newswire (Canada)
TORONTO and LONDON, UK, Sept. 17 /CNW/ -- Acquisition propels
Synchronica to market leadership in next generation mobile
messaging for emerging markets Highlights: - Acquisition brings
total addressable market to 853 million subscribers. - Additional
contracts with large mobile operator expanding Synchronica's reach
into the high growth region of India, the second largest mobile
market worldwide. - Integrated into Synchronica's Mobile Gateway,
iseemedia's document transcoding engine will reduce network
bandwidth consumption by up to 90% when downloading Email
attachments. - CAD $1.53 million raised through the concurrent sale
of assets to support integration of technology and customer base. -
Synchronica to add Toronto (TSX Venture Exchange) listing to its
London (AIM) listing. - Deal represents another landmark in
Synchronica's bid to become the leader in next-generation mobile
messaging for emerging markets. Acquisition of iseemedia TORONTO
and LONDON, UK, Sept. 17 /CNW/ - iseemedia Inc. ("iseemedia" -
TSX-V: IEE) and Synchronica plc ("Synchronica" - AIM: Sync)
announced today that Synchronica has acquired over 74% of the
outstanding shares of Canadian mobile Email competitor iseemedia
Inc. ("iseemedia"). On July 22, 2010, Synchronica launched a
take-over bid for all the common shares and common share purchase
warrants of iseemedia (the "Bid"). At 5:00 p.m. on Wednesday
September 15, 2010, over 54,301,342 common shares of iseemedia Inc.
(over 74% of iseemedia's outstanding common shares) and 7,373,750
common share purchase warrants had been deposited to the Bid. All
conditions to the Bid were either satisfied or waived, where
capable of waiver. Yesterday, Synchronica formally notified the
depositary for the Bid that it was taking up all those shares and
warrants. Synchronica will take up all shares currently tendered to
the Bid, sufficient to gain control of iseemedia. As previously
announced, in order to acquire at least 90% of iseemedia and
further expedite the second-stage going private transaction,
Synchronica has extended its offer to 5:00 p.m. on Friday,
September 24, 2010. This extension will provide additional time for
those current shareholders and warrant-holders of iseemedia, who
have not deposited their securities to do so. During the extension
period, subject to securities law requirements, Synchronica may, in
its discretion, take-up any additional shares or warrants deposited
in accordance with the Bid's terms. The takeover represents a key
step in Synchronica's aim to become the leader in advanced mobile
messaging solutions in high-growth emerging markets, adding several
large mobile operator customers in India and South-East Asia to the
Company's existing customer base of 40 carriers worldwide.
iseemedia Sale of RealBiz360 Inc. Concurrently with Synchronica's
acquisition, iseemedia has sold its ownership share of its
subsidiary, RealBiz360 Inc. and related assets, which are not
related to the business of mobile communication. The sale, which
was approved by the TSX Venture Exchange, for CAD$ 1.53m, will
provide funds to be used in the operations of the combined company.
Leadership in Mobile Messaging iseemedia's core business focus has
been on entry-level messaging services for emerging markets, which
matches Synchronica's position as a provider of advanced messaging
solutions from basic handsets to Smartphones. Synchronica will
integrate iseemedia's patent-pending document streaming technology
"iseedocs" into the next version of Mobile Gateway. Using advanced
streaming, iseedocs can reduce network bandwidth consumption by as
much as 90% when downloading Email attachments. Synchronica has a
successful track record in acquiring and integrating technology and
customers following acquisitions. Previously the company integrated
acquired technology within six months and has continued to support
the existing customer base of acquired companies. Acquired
Customers and Technology The iseemedia acquisition is Synchronica's
second purchase in 2010 following Colibria's IMPS Instant Messaging
business in March 2010. Specifically, the iseemedia acquisition
brings: - Contracts with three large mobile operators in India and
South-East Asia manifesting a market entry for Synchronica in the
high growth region of India. According the Telecom Regulatory
Authority, the total number of mobile users reached 653 million in
July with 17 million users added in one month alone. - An enhanced
market position in global mobile messaging, supplementing
Synchronica's 660 million contracted addressable market from 40
mobile operator customers with iseemedia's 193 million from four
mobile operators resulting in a total addressable market of 853
million subscribers and 44 mobile operator customers. - iseemedia's
patent-pending, advanced document transcoding engine "iseedocs",
which will enhance Synchronica Mobile Gateway's Email attachment
handling and enable mobile operators to reduce network bandwidth
consumption by up to 90%. Commenting on the acquisition, Carsten
Brinkschulte, CEO of Synchronica, said: "To achieve our goal of
market leadership in emerging markets, our strategy is to grow
organically, as well as by acquisition. This acquisition gives
Synchronica contracts with large mobile operators in India, the
second-largest mobile market in the world, while also providing us
with additional advanced technology to improve the competitive
positioning of Mobile Gateway. We are committed to working closely
with iseemedia's customers over the coming months to ensure a
seamless transition." Anthony DeCristofaro, CEO and President of
iseemedia, adds: "We are extremely pleased to now join forces with
Synchronica, creating the worldwide leading provider of advanced
messaging solutions from basic handsets to Smartphones. With our
experience with carriers in the Indian-subcontinent, coupled with
Synchronica's superb distribution channels and global customer
base, we look forward to this new chapter of our story." About
iseemedia Inc iseemedia Inc. is a mobile software company focused
on the commercialization of a Service Delivery Platform (iseemail
TM) for delivering push Email services to the mass market and an
advanced Content Delivery Platform (iseedocs TM) for rich media
adaptation and extremely cost-efficient network delivery to mobile
devices. The Company maintains a broad portfolio of issued and
pending patents that cover content authoring, streaming and
interactive viewing on mobile devices. iseemedia was founded in
March 2002 and has been traded on the TSXV in Toronto since June
2005. For more information, please visit: www.iseemedia.com. About
Synchronica plc Synchronica plc is a leading developer of
next-generation mobile messaging solutions based on open industry
standards. 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-labelled and offered by mobile operators and device
manufacturers in emerging and developed markets to provide mass
market messaging services, increasing data revenues and reducing
churn. Synchronica Mobile Gateway provides a unique multi-protocol
gateway combining Push IMAP, SyncML, ActiveSync, Email-to-MMS, and
Email-to-SMS, delivering messaging services to literally any mobile
phone currently in the market without requiring an additional
client to be downloaded. Expanding instant messaging to mobile
devices, Mobile Gateway establishes carrier-branded IM communities,
using the industry standard XMPP and provides gateways to popular
internet IM communities, connecting any IMPS-enabled handset.
Headquartered in England, Synchronica also maintains development
centres in Germany and the Philippines in addition to a regional
presence in the USA, Hong Kong, Madrid and Dubai. Synchronica plc
is a public company traded on the AIM list of the London Stock
Exchange (SYNC.L). For further information, please visit
www.synchronica.com. Forward-Looking Statements: This news release
includes certain forward-looking statements that are based upon
current expectations, which involve risks and uncertainties
associated with Synchronica's business and the environment in which
those businesses operate. Any statements contained herein that are
not statements of historical facts may be deemed to be
forward-looking, including those identified by the expressions
"anticipate", "believe", "plan", "estimate", "expect", "intend",
and similar expressions to the extent they relate to either
Synchronica or its management. The forward-looking statements are
not historical facts, but reflect Synchronica's current
expectations regarding future results or events. These
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results or events to differ
materially from current expectations, including the matters
discussed in Section 8 (under the heading "Risk Factors Related to
the Offer") of the Circular contained in the take-over bid circular
dated July 22, 2010 filed with respect to the Bid at www.sedar.com,
as amended pursuant to related notices filed at www.sedar.com.
Synchronica assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements.
%SEDAR: 00020202E iseemedia Inc., David Berman, CFO, +1 905 761
5293; Synchronica plc, Carsten Brinkschulte, CEO, +44 (0) 7977 256
406, Angus Dent, CFO, +44 (0) 7977 256 347, Nicole Meissner, COO,
+44 (0) 7977 256 412, www.synchronica.com; finnCap, Clive Carver,
Nomad, +44 (0) 20 7600 1658, Charlotte Stranner, Corporate Finance,
+44 (0) 20 7600 1658; Stephen Norcross, Corporate Broker, +44 (0)
20 3207 3211; Walbrook PR Ltd, Paul McManus, +44 (0) 20 7933 8787,
+44 (0) 7980 541 893, paul.mcmanus@walbrookpr.com
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