Social Mobile to acquire Sonim Technologies in $20 million deal

SAN DIEGO/HOLLYWOOD - Social Mobile has agreed to acquire rugged mobile device maker Sonim Technologies (NASDAQ:SONM) in an all-cash transaction valued at $20 million, including a potential $5 million earn-out, the companies announced Friday. The deal comes as Sonim’s stock has surged 12% over the past week, though it remains down nearly 76% over the past six months.

The acquisition, expected to close in the fourth quarter of 2025 subject to shareholder and regulatory approvals, aims to expand Social Mobile’s presence in the purpose-built enterprise mobility market. InvestingPro analysis reveals 18 additional key insights about Sonim’s market position and growth potential, with analysts projecting profitability for the company this year.

Social Mobile, a provider of enterprise mobility solutions and Google Android Enterprise Gold partner, sees the deal as complementary to its existing custom enterprise offerings. The company plans to leverage Sonim’s expertise in mission-critical mobile solutions to enhance its product portfolio.

"We are thrilled about the synergies this acquisition creates and the potential it unlocks for both organizations," said Robert Morcos, CEO of Social Mobile.

Mike Mulica, Chair of Sonim’s Board of Directors, noted that Social Mobile’s "strong reputation among our carrier customers" was a key factor in the decision to proceed with the transaction.

Sonim Technologies, founded in 1999, specializes in ruggedized mobile solutions including phones and wireless internet devices designed for durability. With a current market capitalization of $13.91 million and operating with a 20.45% gross profit margin, the company sells its products through wireless carriers and distributors in North America, EMEA, and Australia/New Zealand.

The agreement has been approved by Sonim’s Board of Directors. Roth Capital is serving as financial advisor to Sonim Technologies in the transaction.

The announcement comes as Sonim had been exploring strategic alternatives. According to the press release statement, the acquisition represents a step in "returning value to shareholders while ensuring the long-term success of Sonim." InvestingPro data shows the company has been facing financial challenges, with a weak overall Financial Health Score and rapid cash burn, making this strategic move particularly significant for its future.

In other recent news, Sonim Technologies has been at the center of several significant developments. The company announced a public offering of 7.4 million shares at $0.75 per share, aiming to raise approximately $5.55 million. This move, led by Roth Capital Partners, is intended to support Sonim’s business strategy and may include debt repayment. Meanwhile, Sonim’s Special Committee rejected an acquisition proposal from Orbic North America, favoring a Letter of Intent with Social Mobile for the sale of its operating assets. The committee cited greater transaction value and certainty with the Social Mobile deal, which does not require third-party financing.

AJP Holding Company and Orbic North America have urged Sonim stockholders to vote for their proposed board members, criticizing Sonim’s board for rejecting their acquisition offer. They argue that their offer would have provided a 66.7% premium over the initial closing amount of the Social Mobile transaction. Additionally, Sonim provided an update on its proposed reverse takeover with a U.S. company focused on Nvidia-based AI factories, with the potential for Sonim shareholders to receive equity valued at $17.5 million. The company cautioned that several approvals are required for the transaction, including stockholder and Nasdaq approvals. These recent developments highlight a period of strategic decision-making and financial maneuvering for Sonim Technologies.

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