Syntonic (ASX:SYT) says the proposed acquisition includes Zenvia’s core technology platform, operational assets, and the assignment of all contracts for a cash consideration of US$700,000 (A$940,000). It also includes a vendor earn-out of 20% of the first US$21.5 million (A$28.9 million) of contribution margin generated by the acquired assets over 3.5 years.
The proposed acquisition is subject to Syntonic board approval and the executing of formal binding agreements.
Syntonic says that, subject to execution of formal agreements, it proposes to operate the Zenvia Mobile Commerce Platform as a stand-alone business and as a value-added service integrated with its own Connected Services Platform.
Gary Greenbaum, chief executive and managing director of Syntonic, said, “The proposed acquisition of Zenvia’s mobile commerce business unit represents an exciting strategic development for Syntonic. The business is well established and generating revenues through its operator and content partnerships. The respective business and technical assets complement each other and allow us to enhance the Freeway value proposition for consumers, operators, and content providers, and to capture new revenue opportunities.
“Following completion of the proposed acquisition, Syntonic will be the only company with a mobile commerce platform integrated with all of Brazil’s major operators and partnerships with major content providers using the platform service.
“These established relationships form a solid foundation for Syntonic to offer tailored solutions to its partners and an ideal platform to launch Freeway service into Brazil, the ninth largest economy in the world.”