Synchronica announced it has acquired AxisMobile:
- AxisMobile was purchased for £2.8 million ($5.1 million), paid mostly in shares of Synchronica.
- AxisMobile was financially distressed.
- Synchronica got a good deal. It paid a low price for good technology and removal of an important competitor. In addition, revenues from AxisMobile’s customers should soon pay off the acquisition cost.
- Synchronica tied the acquisition in with a round of funding. This appears to have been an effective technique. Without the linkage, Synchronica might well have found it hard to raise financing, or the terms might have been much less favorable.
For a detailed analysis, see our report Synchronica Buys AxisMobile: Transaction Assessment.
... Ferris Research