Mobile messaging firm Synchronica (LON:SYNC) advised shareholders to take no action after Swiss rival Myriad firmed-up its initial approach into a full takeover offer.
The Swiss firm has made an all-share bid worth 13p per share, valuing Synchronica at about £20.6 million.
Myriad added that it will continue discussions with Synchronica’s board to try and get the offer recommended by the directors.
Previously, Synchronica’s board had rebuffed the approach and two weeks ago the firm issued a bullish trading update stating it expected latest full-year revenues to be marginally ahead of market expectations.
Myriad said a merger would give Synchronica shareholders an investment in a company with a larger established base of installed products, a global spread of revenues and a stronger balance sheet.
It added that Synchronica had an obligation to pay deferred acquisition consideration to Nokia of approximately US$20.2 million before 31 December 2015 and does not believe in its current financial position and with its future prospects, Synchronica will be able to repay the Nokia debt.
Simon Wilkinson, Myriad’s chief executive said: "We view our all share offer as attractive to the shareholders of Synchronica.”
“It represents a significant premium to Synchronica's volume-weighted average share price in November and December 2011 and a compelling value proposition, affording Synchronica shareholders continued participation in a combined business that we consider will be a leader in mobile software technology, with an enhanced product portfolio and cross-selling opportunities.”