Synchronoss Technologies, Inc. (NASDAQ: SNCR) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it has entered into an agreement for the sale of Intralinks Holdings. Of course, this led to excitement among investors, prompting gains in the value of the stock and an alert from our friends at Trade Ideas. Currently (8:42), SNCR is trading at $15.09 per share after a gain of $1.36 per share or 9.91% thus far today.
Siris Capital To Acquire 100% Of Intralinks From SNCR
As mentioned above, Synchronoss Technologies is having an incredibly strong start to the trading session this morning after it was announced that Siris Capital Group has entered into a definitive agreement to acquire 100% of the common stock of Intralinks Holdings, Inc. Intralinks Holdings is a global leader for secure data sharing and enterprise collaboration solutions. It is also a wholly owned subsidiary of SNCR.
According to the terms of the agreement as outlined in a press release early this morning, Siris will acquire all common stock of Intralinks for approximately $1 billion, turning Intralinks into an independent, privately owned portfolio company of Siris.
On top of the $1 billion paid for Intralinks, Siris has also agreed to make an investment in convertible preferred equity of SNCR in the amount of $185 million. As a result, Siris’ investment will initially be converted into approximately 19.8% of SNCR common stock and would involve certain approval and governance rights. This includes rights with respect to the composition of the board as well as certain consent rights relating to the company. In a statement, Leif O’Leary, Executive Vice President of Strategic Financials for Synchronoss, had the following to offer:
“I am honored to have the opportunity to lead a refocused and reenergized Intralinks as we start this new and exciting chapter of our evolution. By reemerging as a standalone company, we will enhance and accelerate our growth and deliver more value to our customers, partners, and employees. Siris is the ideal partner for a number of reasons: it has deep domain expertise in enterprise communications and collaboration, a strong deal-making pedigree and first-hand financial services experience, a strong operational focus, and a shared commitment to customer enablement and success. All these qualities make Siris a natural strategic and financial partner for Intralinks.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA finance team will continue to keep a close eye on SNCR. In particular, we’re interested in following the company to see the moves it makes following the acquisition of Intralinks and with $1+ billion in additional funding to get the ball rolling. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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