Orbic North America, LLC Announces Agreement in Principle to Acquire a Substantial Equity Ownership Position in Sonim Technologies, Inc.

Rhea-AI Summary

Orbic North America has announced an agreement in principle with AJP Holding Company to acquire a substantial equity position in Sonim Technologies (NASDAQ:SONM), a leading U.S. provider of ultra-rugged mobility solutions. Upon finalizing the definitive agreement, Orbic would become Sonim's largest single shareholder.

Following the transaction, Orbic plans to initiate strategic discussions with Sonim to identify and monetize operating and financial synergies across R&D, supply chains, and global market expansion opportunities in the U.S., Europe, India, and Asia Pacific. The announcement came at the close of the Consumer Electronics Show in Las Vegas.

Mike Narula, President and CEO of Orbic, emphasized that this strategic move aligns with their initiative to maintain and grow their position as a best-in-class developer and manufacturer of innovative mobile solutions, with additional global strategic partnerships to be announced soon.

Positive

• Potential synergies across R&D, supply chains, and operations
• Geographic market expansion opportunities in US, Europe, India, and Asia Pacific
• Strategic alignment between mobile technology companies
• Position as largest single shareholder provides significant influence

Negative

• Transaction value and terms not disclosed
• Agreement still in principle, pending definitive agreement
• Integration and synergy realization uncertainties

HAUPPAUGE, N.Y., Jan. 15, 2025 /PRNewswire/ -- Orbic North America, LLC ("Orbic"), an international leader in mobile technology innovation, announced today that at the close of the Consumer Electronics Show in Las Vegas that it has entered into an agreement in principle with AJP Holding Company, LLC ("AJP") to acquire from AJP a substantial position in the shares of Sonim Technologies, Inc. (NASDAQ:SONM) ("Sonim"), a leading U.S. provider of ultra-rugged mobility solutions. Upon execution of a definitive agreement between Orbic and AJP, Orbic would become the largest single shareholder of Sonim.

Following the closing of the transaction, Orbic intends to initiate discussions with Sonim whereby the parties would be able to begin an arm's length strategic process to identify, monetize and deliver operating and financial synergies to both companies' shareholders and customers across R&D, supply chains, and geographic market expansion opportunities globally, including the U.S., Europe, India, and other countries in Asia Pacific. Mike Narula, President and CEO of Orbic, noted: "The dynamic changes in the mobile connected device global marketplace requires a flexible strategic focus to maximize our operating, manufacturing and financial performance on behalf of our carrier customers, our end users, and our vendors and suppliers. A relationship with Sonim would be a continuation of our initiative to maintain and grow our pre-eminent position as best-in-class developer and manufacturer of innovative mobile solutions. We have a number of other strategic partner global initiatives which we look forward to announcing in the near future."

About Orbic
Orbic, a US-headquartered technology company based in New York, reimagines the connected experience by thinking outside of the mainstream. Using best-in-class technology, Orbic provides meaningful features to customers seeking something unique and accessible to all, without exclusion. As a leader in developing and manufacturing innovative mobile solutions for smart, value-tech consumers, Orbic offers a full portfolio of connected solutions from smartphones and tablets to mobile hotspots and connected laptops. Orbic's extensive global ecosystem of partners, suppliers, and carriers ensures that their products deliver exceptional value and performance, making high-quality technology accessible to a wider audience. For more information, visit www.orbic.us

About Sonim Technologies
Sonim Technologies is a leading U.S. provider of ultra-rugged and rugged mobile solutions, including phones, wireless internet data devices, accessories and software designed to provide extra protection for users that demand more durability in their work and everyday lives. Trusted by first responders, government, and Fortune 500 customers since 1999, Sonim currently sells a line of ruggedized mobility solutions through tier one wireless carriers and distributors in North America, EMEA, and Australia/New Zealand. For more information, visit www.sonimtech.com.

For inquiries: Doug Benedict
Orbic North America, LLC
doug.benedict@orbic.us

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SOURCE Orbic

FAQ

What is the ownership stake Orbic will acquire in Sonim Technologies (SONM)?

The exact ownership stake was not disclosed, but Orbic will acquire a substantial position that would make it the largest single shareholder of Sonim Technologies.

What are the expected synergies from Orbic's acquisition of SONM shares?

The expected synergies include operational and financial benefits across R&D, supply chains, and geographic market expansion opportunities in the US, Europe, India, and Asia Pacific regions.

When will the Orbic-SONM transaction be completed?

The completion timeline was not specified. The agreement is currently in principle and requires execution of a definitive agreement between Orbic and AJP Holding Company.

Which markets will SONM expand into after the Orbic investment?

Following the transaction, Sonim Technologies plans to expand into global markets including the US, Europe, India, and other countries in the Asia Pacific region.

Who is selling the SONM shares to Orbic?

AJP Holding Company, is selling their substantial position in Sonim Technologies shares to Orbic.