DOOGEE, a leading global manufacturer of rugged mobile devices, today announced that it has submitted a non-binding proposal to acquire all outstanding shares of Sonim Technologies, Inc. (NASDAQ: SONM) for $3.60 per share in cash, representing a significant premium over Sonim’s recent trading price and a valuation meaningfully above its previously disclosed Letter of Intent with Social Mobile.
The proposed purchase price implies a fully diluted equity value substantially higher than the up to $20 million valuation contemplated in the LOI. Furthermore, DOOGEE believes its all-cash offer represents superior and more certain value for Sonim shareholders, without the conditionality and execution risk associated with contingent earnouts.
DOOGEE understands that Sonim has granted Social Mobile a period of exclusivity in connection with the LOI. DOOGEE respects this process and is prepared to commence due diligence immediately upon the expiration or termination of the exclusivity period. DOOGEE has sufficient cash on hand and access to a committed revolving credit facility to fully fund the transaction and does not require additional external financing or approval to complete the acquisition.
“We have great respect for Sonim’s heritage and strong brand in rugged mobile technology, particularly in the U.S. enterprise markets,” said a DOOGEE’s spokesperson. “We believe that combining Sonim’s domestic market strength with DOOGEE’s global manufacturing capabilities and product portfolio would create a category leader with the scale and resources to innovate faster and grow more efficiently.”
The indication of interest is non-binding and subject to satisfactory completion of due diligence, the negotiation of definitive documentation, and other customary conditions. There can be no assurance that any transaction will be consummated.
The company encourages the Sonim Board of Directors to fully evaluate this compelling alternative in light of its fiduciary duties to shareholders.
