Synchronica Acquires Neustar NGM Services

Synchronica, the international provider of push e-mail, instant messaging and social networking services, announced that it entered into an agreement to acquire customer contracts, accounts, intellectual property, patents and software, and all other associated assets from Neustar NGM Services and certain of its affiliates.

Synchronica (News - Alert) will acquire the instant messaging business, including the technology, 11 contracts with Tier-1 and Tier-2 mobile operators and two contracts with Tier-1 device manufacturers for a cash consideration of $251,000, according to company sources.

The $251,000 acquisition will enable Synchronica to acquire certain assets and liabilities from Neustar NGM and certain affiliates relating directly to their IM business. The takeover of IM business is expected to accelerate its business and further increase its market share in the Instant Messaging segment, company officials said.

“We are delighted to acquire these assets, further accelerating our business and cementing our position as the leading provider of next generation messaging services for mobile operators and device manufacturers,” said Carsten Brinkschulte (News - Alert), CEO of Synchronica, in a statement. “Synchronica is committed to continue support for these products and providing a vision and roadmap including synergies with other Synchronica messaging products.”

The acquisition includes Neustar NGM's customer base, its patented technology, other assets and a defined pool of liabilities including the on-going, paid for support of the live customer deployments. Out of the cash consideration of $251,000, $1,000 will be paid on the closing date and the balance will be paid on or about 90 days thereafter. If the cash and near cash assets of Neustar NGM will be less than the agreed amount or the liabilities are more than what has been agreed, then Neustar will make good any difference in cash.

As part of the acquisition, Synchronica will offer a short-term loan of approximately $1.5 million, repayable at any time in the period to 31st December 2011 without penalty. The interest for the loan will be 1 percent per month and there will be a bonus issue of approximately 450,000 new ordinary 15p shares.

In January, 2011, Synchronica announced that it signed an initial $500,000+ contract with mass market-focused African handset manufacturer.