Tuesday, 19 August 2008

Synchronica Acquires AxisMobile

Synchronica, the international provider of mobile email and synchronization solutions, announced that it is acquiring consumer mobile email specialist AxisMobile for USD4.9 million in new Synchronica shares. Synchronica also stated that it has raised additional funds of USD10 million, from new and existing institutional investors, which brings the total funding secured in 2008 to USD18 million.

The additional funds will be used to accelerate product integration and fuel the growth of the combined business in emerging markets such as China, Africa, the Middle East, Eastern Europe and Latin America.

The AxisMobile acquisition aims to make Synchronica the leading player in mass market mobile email and synchronization middleware for mobile operators and service providers.

The AxisMobile acquisition will also enlarge Synchronica's footprint in emerging markets, by adding a strong sales force and key customer contracts in the relatively untapped areas of Eastern Europe, CIS and Russia, to Synchronica’s existing sales presence in the Middle East, Africa and Latin America.

Commenting on the acquisition, Synchronica CEO Carsten Brinkschulte said that the fundraising and the acquisition of AxisMobile is a dramatic acceleration for Synchronica and it will build value for shareholders.

On the other hand, Shai Schiller, Executive Chairman of AxisMobile, adds that this is the start of an exciting new era for AxisMobile and the customers. "There are real synergies between Synchronica's products and target markets and our own, so it makes great commercial sense to combine forces," said Schiller.

Forecasts point to emerging markets as a breakthrough area for mass-market mobile email. Informa predicts that there will be 4.81 billion mobile phone subscribers by 2012, with the next billion subscribers coming from emerging markets, where PC and fixed-line penetration is low.