In Synchronica, which provides communication systems for mobile operators, has announced that the company has reached conditional agreement with Nokia to acquire Nokia's Operator Branded Messaging (OBM) business for USD 25 million. This news must be seen in light of the fact that Nokia is keen to shed all its non-core businesses, as it prepares for the release of its first Microsoft Windows based smartphone.
The deal will give Synchronica access to Nokias 6 million active end users across 10 live deployments, including AT&T, Bell Canada, Rogers Wireless, Sprint Nextel, T-Mobile USA and Verizon Wireless. The acquired technology includes Nokia's email, Instant Messaging (IM) and Social Networking Gateway and client software.
The authorised spokesperson of Synchronica said, Synchronica is buying Nokia's OBM business - the source code for the technology, patents and patent applications, licences for further patents. 250 employees and contractors will transfer from Nokia to Synchronica - including those employees and contractors in India.
Synchronica has more than 80 existing carrier contracts in Europe, Latin America, Africa, Russia and Asia. As a part of the deal, Synchronica will take up the responsibility for the development, maintenance and support of the Nokia messaging software, which gets shipped with millions of Nokia devices. It will also be responsible for looking after the gateway functionality for both Series 40 and Symbian devices.
Approximately 250 employees, externals and contractors are set to get transferred from Nokia to Synchronica. The tentative agreement between the two companies is conditional to regulatory and shareholder approvals. It is likely to be executed by the third quarter of 2011.
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