DAT Group PLC
04 April 2005
Embargoed until 7.00am on Monday 04 April 2005
DAT GROUP PLC
ACQUISITION OF SYNCHRONICA SOFTWARE GMBH AND BUYOUT OF THIRD PARTY RIGHTS TO
SYNCHRONICA SOFTWARE PRODUCTS
DAT Group plc ('DAT' or 'the Company'), a developer and licenser of mobile
device management software, announces the acquisition of the entire issued share
capital of Synchronica Software GmbH ('Synchronica'), a Berlin based software
company which has developed and, subject to the agreement with Ergon Informatik
AG ('Ergon') referred to below, owns data synchronisation and device management
software products. These products are complementary to the DAT Mobility Platform
('DMP') and are based on an industry standard called SyncML. Synchronica's
products are already available on the market and work with OMA (Open Mobile
Alliance) compliant devices.
The technology that the Company has acquired through this acquisition will
accelerate significantly the development and reach of the Tabella offering and
broaden the DMP technology platform. In its simplest version, Tabella (using the
recently acquired SyncML technology) will be aimed at the millions of users of
mid range devices who have no way of backing up their contacts. It will also
help DAT to address an even larger market for active data synchronisation and
device management for large mobile phone operators.
The consideration for the acquisition of Synchronica was €400,000 in cash paid
on completion (31 March 2005), €100,000 in cash payable 12 months after the date
of completion and the allotment to the vendors of options in respect of new
Ordinary shares in DAT with a market value of €250,000. The cash consideration
will be satisfied from the Company's existing cash resources.
Agreement has also been reached for the variation of a contract between
Synchronica and Ergon under which Ergon undertook to maintain and develop
Synchronica's OMA Direct Sync software products in return for a 20% revenue
share. This variation agreement became effective on completion of the
acquisition of Synchronica. Under the variation agreement, Ergon vests with
Synchronica all current and future rights to the OMA Direct Sync products'
source codes worldwide. The variation agreement also eliminates Ergon's historic
20% licence revenue entitlement whilst ensuring that Synchronica continues to
receive a 50% share of all licence fees resulting from sales by Ergon of
SyncML-DS products.
The consideration payable to Ergon under the agreement is €600,000, of which
€400,000 was paid on completion of the acquisition of Synchronica out of the
Company's existing cash reserves. Deferred consideration of €200,000 will be
released in monthly instalments over the following 12 months subject to Ergon
meeting commitments to supply further agreed developer time on the SyncML-DS
products.
Commenting on the transactions, David Hayes, DAT's Chief Executive, said 'There
is clear market demand for our DMP platform to include a SyncML capability.
Synchronica brings DAT a suite of well regarded, live products which
significantly extend DMP's reach and addressable market. The acquisition will
help us to address, immediately, an area of growing importance for many of the
large mobile phone operators - active data synchronisation and device
management.
Additionally, we expect the acquisition to accelerate the development and reach
of our recently announced Tabella e-mail service. There is much work now to be
done to integrate these products into our software solutions.'
For further information please visit www.datgroup.com or contact:
David Hayes, CEO Simon Hudson/Clemmie Carr
DAT Group plc Tavistock Communications
Tel: +44 1580 831 406 Tel: +44 20 7920 3150
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.