Nokia is flogging off its messaging business to Synchronica, a British developer of mobile messaging software.
The business unit provides e-mail and instant messaging services to the likes of AT&T and Verizon and will write a cheque for $25 million in cash for the assets. A lot of that will be for 18.3 million common shares in Synchronica.
As part of the deal, Synchronica will take over contracts serving 10 mobile operators in North America, and obtain source code for Nokia's client and server software, as well as some patents and patent applications.
It gives Synchronica, a foothold in the US. Synchronica will also provides the messaging software which Nokia will continue to pre-load on Series 40 phones.