Nokia sells messaging unit to Synchronica

ROYAL TUNBRIDGE WELLS, UK: Mobile messaging solutions provider Synchronica announced on Thursday that it has conditionally agreed to acquire Nokia's Operator Branded Messaging (OBM) for US$ 25 million.

The service provides white label mobile email and instant messaging services across a wide range of devices to operators in North America, said a press release. It said the acquisition will provide Synchronica with a successful and complementary mobile messaging business and a strong foothold in the strategically important North American operator market.

Combined with more than 80 existing carrier contracts in Europe, Latin America, Africa, Russia, and Asia, Synchronica aims to become the global leader in next-generation mobile messaging, it added.

With 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, said the company.

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 will assume responsibility for development, maintenance, and support of the Nokia Messaging software shipping with millions of Nokia devices and the gateway functionality for both Series 40 and Symbian devices. Approximately 250 employees, externals, and contractors, are planned to transfer from Nokia to Synchronica.

Synchronica said it plans to continue to develop the acquired messaging platform and to merge both products to create a superior solution with significantly enhanced functionality.

Synchronica's CEO Carsten Brinkschulte said this acquisition marks a key milestone for Synchronica, as it moves “closer to our goal of becoming the leading global player for next-generation mobile messaging”.

“Nokia's successful and highly complementary operator-branded messaging business will at a stroke transform Synchronica's scale, profitability, and geographic scope,” he said.