South Florida based enterprise mobility firm Social Mobile is set to acquire nearly all the assets of Sonim Technologies (NASDAQ: SONM), a longtime provider of rugged mobile devices, in a deal worth up to $20 million, according to press release.
The two firms have signed a Letter of Intent (LOI) outlining the terms of the proposed acquisition. The deal includes up to $5 million in earn outs contingent on Sonim hitting revenue targets. If finalized, the transaction would consolidate Social Mobile’s position as a leading supplier of Android based enterprise mobility solutions across healthcare, transportation, defense, and other industries.
This agreement represents the culmination of a diligent and thoughtful evaluation process, we believe this path not only delivers value to our stockholders but also ensures ongoing opportunities for our investors.
said Mike Mulica, Chair of Sonim’s Special Committee.
The LOI gives Social Mobile exclusive negotiation rights and outlines a clear transaction structure, with secured financing already in place. Meanwhile, Sonim retains the ability to pursue a reverse takeover (RTO), a move that could help it maintain a public listing and potentially unlock additional shareholder value.
Founded in 1999, Sonim has built a niche in ruggedized mobile hardware for mission critical use cases, counting first responders and government agencies among its customer base. The company is headquartered in San Diego but sells through major carriers across North America, Europe, and Australia.
Social Mobile, led by founder and CEO Robert Morcos, has grown into one of the fastest rising Android Enterprise Gold partners globally, with more than 15 million devices deployed and major clients spanning multiple verticals. Headquartered in Hollywood, Florida, the company has been steadily expanding its custom device design and managed mobility services footprint worldwide.
We see tremendous synergies with this acquisition, Sonim’s rugged and innovative mobile solutions are a perfect complement to our mission. Together, we’ll be even better positioned to serve global enterprise clients.
said Robert Morcos, Founder and CEO of Social Mobile
The deal, if completed, would deepen Social Mobile’s hardware capabilities and potentially bring Sonim’s rugged offerings into new enterprise verticals. For Sonim, the move comes after what its board described as an “exhaustive review of strategic alternatives” aimed at maximizing shareholder returns.
The companies did not specify a closing timeline, but noted that the transaction remains subject to customary conditions and approvals.