Myriad’s new £23.9m Synchronica bid approved

MYRIAD’S hostile takeover battle for competitor Synchronica today reached a conclusion after the latter’s board recommended an improved offer for the business.

Myriad, which is listed on the Swiss stock exchange but whose chief executive Simon Wilkinson runs a 100-strong base from Didsbury, south Manchester, has increased its share-based offer for Synchronica to 4.83 Myriad shares for 100 Sychronica shares, which values the business at around £23.85m.

A joint statement by both boards stated that the deal will give the combined group “a larger established base of installed products, a global spread of revenues, a stronger balance sheet, an experienced management team and the potential to take advantage of significant future growth opportunities”.

Myriad is a mobile software firm which produces products for platforms such as Java and Google’s Android operating system. Synchronica’s main asset is a mobile messaging system known as Gateway.

The deal also involves Myriad providing short-term loans of up to £3m in March and April for working capital. Tunbridge Wells-based Synchronica had needed to find funding to help repay money owed to Nokia.

The revised offer of an equivalent to 15p per Synchronica share represents a premium of 15.4% of its initial 13p offer, or 93.6% to the 7.75p its shares were valued at on December 30 when the firm first announced it had received an approach.

Mr Wilkinson said: “The combined businesses should be well-positioned to exploit the opportunities presented by the growing global demand for mobile data consumption and to deliver enhanced value for shareholders.”

David Mason, executive chairman of Synchronica, said the fact that Nokia held a fixed charge over its assets meant that it had been unable to raise debt for working capital on commercial terms.

“Given these circumstances, the Synchronica board has concluded that the increased Myriad offer and their loan to fund some of the payroll costs represent the best option for Synchronica and its shareholders.  

“The two companies are a good commercial fit with complementary customer bases and technology.”