Myriad Group confirmed a bid to acquire messaging products company Synchronica, proposing a deal that would value the target company at around £20.6 million.

According to device software company Myriad: “with an enhanced product offering, cross-selling opportunities, a strengthened IP portfolio and the potential for synergies, Myriad believes that the potential acquisition would enhance its position as a global player, serving more than 100 mobile operators and over 20 handset manufacturers and OEMs.”

However, Synchronica noted that while it has held talks with Myriad, “as at the date of this announcement, the board has been unable to reach agreement with Myriad.” With regard to the current offer, it said that “shareholders are advised to take no action,” and that “a further announcement will be made in due course.”

Earlier this year, Synchronica said it had rejected an initial offer from Myriad.

According to the potential acquirer, the transaction would create a European-headquartered, global business. The combined unit will also have a research, development and support capability that “should accelerate new business development.”

Myriad said that as of 10 November 2011 – the day before it first made an approach to Synchronica – the messaging company had a market capitalisation of £12.1 million, and an obligation to pay Nokia US$20.2 million before the end of 2015 related to the acquisition of Nokia assets.

As of 30 January 2012, Myriad had a market capitalisation of around £136.9 million, and a cash balance of US$25 million.

It was noted that the Nokia debt will not become immediately payable as a result of a change of ownership of Synchronica.

Simon Wilkinson, CEO of Myriad, said (pictured): “The combined businesses should be well positioned to exploit the opportunities presented by the growing global demand for mobile data consumption and to deliver enhanced value for shareholders.”