Synchronica acquires Axis Mobile for $4.9 million

UK company to target emerging markets with mobile email software.

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By  George Bevir Published  August 18, 2008

Synchronica, a UK-based company specialising in mobile email software, plans to target emerging markets in Africa and the Middle East following its proposed acquisition of rival Axis Mobile for US$4.9 million in new shares.

Synchronica also said it has raised additional funds of $10million, from new and existing institutional investors, bringing the total funding secured in 2008 to $18 million.

Synchronica’s ‘Mobile Gateway’ product delivers push email and mobile synchronisation of calendar and contact data for consumer and business users, with connectors to mass-market mailboxes including Yahoo, G-Mail, Microsoft Exchange and Lotus Domino.

The company claims that the injection of technology from Axis Mobile, which is listed on the London Stock Exchange’s Alternative Investment Market (AIM) will enable the most basic phones to send and receive email, helping it to target emerging markets around the world.

Synchronica CEO Carsten Brinkschulte said: “We aim to build a world leader in the market of consumer mobile email and synchronization solutions, and this acquisition is a key milestone that will improve our competitive positioning and accelerate our commercial growth.”

Research company 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 still relatively low.

Brinkschulte added: “This acquisition will increase our ability to sell to customers, particularly to those in emerging economies, where we see the largest potential growth for mobile email and synchronisation.”

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.

As part of the deal, Axis Mobile’s sales force and customer contracts in Eastern Europe, CIS and Russia will be added to Synchronica’s existing sales presence in the Middle East, Africa and Latin America.

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