Synchronoss Technologies, Inc. (NASDAQ: SNCR) is having an incredible day in the market today after the company made an after-hours announcement of a potential sale of the horizons. Of course, this led to excitement among investors, causing gains in the stock and prompting our partners at Trade Ideas to alert us to the movement. At the moment (11:29), SNCR is trading at $14.21 per share after a gain of $3.49 per share (32.56%) thus far today.
SNCR Gains On Potential Sale
As mentioned above, Synchronoss Technologies is having an incredible time in the market today after announcing a potential transaction in the works. According to various reports, buyout shop Siris Capital Partners said in a filing that the two companies have restarted discussions with regard to a potential transaction.
In a statement, Siris said that it is planning to negotiate with SNCR with regard to the possibility of an acquisition of the data sharing platform known as Intralinks Holdings Inc. Siris said that it is willing to buy the platform for $915 million in cash. The company is also considering making a $185-million investment in preferred equity. This would ultimately be convertible into a 20% common share stake.
If the deal were to go through, it would prove to be an instant return of value for the company and shareholders alike. In fact, SNCR acquired Intralinks for $821 million, making the $915 million cash price an appealing offer. According to the filing by Siris, the two sides have entered into an exclusivity agreement which will expire on October 11th. So, if a deal were to take place, we’ll likely know about it within the next 5 days.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SNCR. In particular, we’re going to be following the story surrounding the potential acquisition of Intralinks and bringing the news to you as it breaks!