OnMobile Global has sold VoxMobili SA to Synchronoss Technologies for $26 million, saying that “The sale of Voxmobili is directly in line with OnMobile’s strategy of focusing on its core products.” Does this mean that Onmobile doesn’t see data products as being core to its business? The last time OnMobile mentioned VoxMobili was in 2012 concall when it said that the company plans to bring some data products made by the French unit to India.
Also worth noting is that Onmobile had recently settled an intellectual property violation case filed by Synchronoss, against Voxmobili, Onmobile Global and Onmobile USA LLC (details below), alleging infringement of patents by some synchronization products of Voxmobili SA. As per the terms of the out of court settlement, Synchronoss received $3 million from Onmobile, with the caveat that “OnMobile may have to pay to Synchronoss, an additional amount of $3,000,000, subject however to contingencies and conditions attached thereto, the occurrence of which cannot be estimated with reasonable certainty at this stage.”
Onmobile had acquired VoxMobili in 2007 for around $35.12 million, to expand its services to new markets, and the company served as its hub of European operations, but more importantly, for development of its data related products.
VoxMobili had reported a turnover of EUR 12.70 million and profit of EUR 1.03 million in FY13. A price of $26 million would essentially mean that the company is being sold for 1.49 times its FY13 turnover, and 16.24 to 18.36 times times profit. It is one of the two French companies acquired by Onmobile in France, the other being Telisma SA, which is now called Onmobile SA. Onmobile recently wrote down Rs 68 crore in Telisma.
NASDAQ-listed Synchronoss is a cloud solutions and software activations company. The company reported net revenues of $98.5 million, an increase of 26% year-on-year and a gross profit was $58.5 million in the first quarter of 2014. On the mobile services side, Synchronoss offers a technology that lets service providers activate services for customers easily.
Recent developments at Onmobile
May 8th: Onmobile CEO and MD Mouli Raman quit. Other senior executives have left too. More here.
May 19th: Onmobile Systems Inc, of which Raman is a shareholder, has increased shareholding in the co to 43.46%. More here.
May 30th: Rajeev Pancholy appointed CEO of Onmobile. More here.
May 30th: Onmobile wrote down Rs 68 crore in Telisma. More here.
Jun 27th: Mouli Raman resigned from Onmobile’s board. Rajeev Pancholy became MD and CEO. More here.
Settlement of litigation (source)
“OnMobile Global Ltd has settled a litigation with Synchronoss Technologies Inc., a Company headquartered in New Jersey and a leading player in synchronization technology products. Synchronoss had filed a suit against OnMobile Global Limited and two of its group entities, OnMobile USA LLC & Voxmobili S A, France, alleging infringement of patents by some synchronization products of Voxmobili SA and the matter was before the District Court of New Jersey. As per the terms of such settlement, Synchronoss has, inter alia, completely released OnMobile Global Limited and its aforesaid subsidiaries (together, “OnMobile”), from all claims fully, without any admission of misconduct by either party, and a joint motion has been filed with the Court seeking dismissal of such litigation. Synchronoss has received $ 3,000,000 as consideration from OnMobile pursuant to such settlement. OnMobile may have to pay to Synchronoss, an additional amount of $ 3,000,000, subject however to contingencies and conditions attached thereto, the occurrence of which cannot be estimated with reasonable certainty at this stage. OnMobile Global Limited believes that the closure of this litigation without any subsisting claims is in the best interests of the Company, given that such settlement would bring finality to the dispute and save further litigation costs.”