Mobile messaging solutions provider Synchronica has conditionally agreed to acquire Nokia’s Operator Branded Messaging (OBM) business for $25 million.
“Synchronica is buying Nokia’s OBM business — the source code for the technology, patents and patent applications, and licences for further patents. About 250 employees and contractors will transfer from Nokia to Synchronica — including those employees and contractors in India,” an authorised spokesperson from Synchronica said.
Nokia has contracts with 10 North American carriers, such as AT&T, Bell Canada, Rogers Wireless, Sprint Nextel, T-Mobile USA and Verizon Wireless, for this service, which will be transferred to Synchronica as part of this deal.
Synchronica has more than 80 existing carrier contracts in Europe, Latin America, Africa, Russia and Asia.
Following Nokia’s assignment of ten operator contracts in North America, Synchronica’s total addressable market across all operator customers worldwide will extend to 1.8 billion end-users, the statement said.
The acquired technology includes Nokia’s email, Instant Messaging (IM) and Social Networking Gateway and client software.
“Nokia’s successful and highly complementary Operator Branded Messaging business will at a stroke transform Synchronica’s scale, profitability and geographic scope,” Mr Carsten Brinkschulte, Chief Executive Officer of Synchronica, said in a statement.
The terms of the acquisition include an assignment of mobile operator contracts as well as source code of the related Nokia messaging client and server software.
As part of the deal, Synchronica and Nokia will enter into a long-term relationship in which Synchronica will provide the messaging software which Nokia will continue to pre-load on Nokia Series 40 phones.
Synchronica said it plans to continue to develop the acquired messaging platform and to merge both products to create a solution with enhanced functionality.
The transaction is conditional on regulatory and shareholders’ approval and Synchronica expects it to close in the third quarter of 2011.