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Synchronica
- BY: Andrew Hore |
- POSTED: 03/01/2012 |
Mobile messaging services developer Synchronica has been approached by Switzerland-quoted Myriad Group.
Synchronica rejected an initial approach but Myriad has returned with a better offer and Synchronica says that it will consider them. At 11.88p a share, up 4.12p on the day, Synchronica is valued at £18.9m.
Myriad (www.myriad group.com) is a rival of Synchronica. Myriad’s products have more than 2.5bn users. Zurich-based Myriad was formed through the merger of Purple Labs and Esmertec in 2009. The company has an office in Manchester and UK institutions already own around 9% of Myriad.
Santander recently started covering Myriad, which like Synchronica is losing money. The broker forecasts a decline in revenues from $101m to $62.1m in 2011.The decline comes from the part of the business supplying messaging software to device manufacturers. This part of the group has lost business with Sagem and Sony Ericsson, while the growth of smartphones has also hit this operation. Myriad is developing products for the Android market. The mobile services business is smaller but it is still growing helped by its newer Xumii technology.
There will be a fall in costs and R&D spending. The pre-tax loss is expected to fall from $30.5m to $10.9m, although most of that reduction comes from lower restructuring costs and write-offs.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2011_27.pdf
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