On August 18, 2008, mobile email vendor Synchronica announced that it will buy mobile email vendor AxisMobile.

This report looks at the purchase and its implications. It is addressed at two constituencies:

• It helps CEOs and business development staff understand how to optimize stock price and design a successful equity sales strategy through understanding the experience of others. It also helps them develop the cost justification for investors.
• It helps investors determine whether the effect of the merger is constructive or not, from the investment standpoint.

Topics include:

• About Synchronica, and how the acquisition benefits Synchronica
• About AxisMobile, and why it had to be sold
• Terms of the deal: price paid, price/revenue ratio, impact on common and preferred shares
• Key statistics about AxisMobile that were relevant to the deal valuation, including revenues and income/loss history, profitability, and funding history
• Survey of comparable deals, including price paid
• Threats to the success of the acquisition

Much of the information presented here is not publicly available. Our off-the-record sources in reports such as these include stockholders, present and past company employees, present and past board members, and people who have participated in confidential meetings with the vendors concerned.

Report 791. 3 pages.