UPDATE 2-Synchronica to buy Canadian peer at discount

* To buy iseemedia in all-stock deal for 5.3 mln stg

* Offer at 9 pct discount to iseemedia’s latest close

* Deal to boost Synchronica’s presence in India, SE Asia

* Synchronica to keep AIM listing, seek Canadian listing

* Synchronica shares down 7.1 pct
(Adds company and analyst comments, details, updates shares)

By Aditi Samajpati

BANGALORE, July 20 (BestGrowthStock) – British mobile email
software developer Synchronica (DAU.L: ) said it agreed to buy
Canadian peer iseemedia (IEE.V: ) for about 5.3 million pounds
($8.1 million) in an all-stock deal to expand in India and
South-East Asia.

Under the terms of the deal, Synchronica will issue 311.3
million shares at about 2.7 Canadian cents apiece and offer
4.03 of its shares for each iseemedia stock.

The offer is at a 9 percent discount to iseemedia’s latest
close on July 14 on the Toronto Venture Exchange.

“If you see their recent statements, it looks as if
(iseemedia) had ongoing cash requirements,” analyst Mike Jeremy
at Daniel Stewart told Reuters on Tuesday.

He said this might have influenced the terms of the offer
made by Synchronica.

A Synchronica spokesman said in an email that the
Toronto-based company sees many advantages from the deal.

The deal will extend Synchronica’s contracted addressable
market of 660 million subscribers by another 193 million and
boost its recurring revenue streams as all iseemedia contracts
are based on monthly active user fees, Synchronica said.

The deal will help Synchronica gain iseemedia’s contracts
with large mobile operators like Tata Teleservices and Reliance
Communications in India, the world’s second-largest and
fastest-growing mobile market in terms of subscribers.

Synchronica said it would maintain its AIM listing and
apply for an additional listing on the Toronto Venture

The deal is conditional upon Synchronica raising about 2
million-4.5 million pounds and the disposal of a non-core
iseemedia business.

Shares in Synchronica were down 8.6 percent at 1.60 pence
at 1037 GMT on the London Stock Exchange.

Stock Market Report

($1=.6567 Pound)
(Reporting by Aditi Samajpati; Editing by Unnikrishnan Nair)

UPDATE 2-Synchronica to buy Canadian peer at discount