Hollywood-based Social Mobile has signed a letter of intent to buy the assets of San Diego-based Sonim Technologies for up to $20 million. The deal includes $5 million tied to future revenue targets.
Social Mobile designs and builds custom Android devices for businesses under their own brand names. Its clients include companies in healthcare, logistics, retail, and other sectors that want specialized phones and tablets not found in the consumer market.
Sonim makes rugged phones and mobile devices used by first responders, government agencies, and industries that need durable equipment. The acquisition will add these products to Social Mobile’s offerings and expand its market reach.
“There are strong synergies between the two companies,” said Social Mobile CEO Robert Morcos. “Sonim’s products are a good fit for our business.”
The deal is still subject to approvals. Once completed, it will also allow Social Mobile to become publicly traded through a reverse takeover, avoiding the need for a traditional IPO.
Social Mobile is growing its international footprint. In addition to its headquarters in Hollywood, it has offices in China and India. The company currently manufactures in China but is moving more production to Taiwan, Mexico, and the U.S.
Miami International Airport plays a key role in the company’s supply chain. Shifting production closer to the U.S. is expected to improve logistics through MIA, which is becoming a more important hub for tech and device shipments between Latin America, Asia, and the U.S.
