Synchronoss To Focus On Core Communications & Media Business, Sell Intralinks

(RTTNews) - Synchronoss Technologies, Inc. (SNCR) said that its board of directors has concluded its review of strategic alternatives and determined that the best approach for the company to achieve its goal of maximizing shareholder value is to focus on its core Communications & Media business, divest non-core assets and improve the company's balance sheet strength, cash position and potential profitability.

Synchronoss noted that its core Communications & Media business, consisting of both predictable, mature segments and long-term growth opportunities, has longstanding relationships with leading communications and media companies around the world.

Under the terms of the definitive agreements, investment funds affiliated with private equity firm Siris Capital Group, LLC will acquire all of the stock of the company's wholly-owned subsidiary, Intralinks Holdings, Inc., for about $1 billion in consideration and also make an investment in convertible preferred equity of Synchronoss in an amount of $185 million.

Siris' investment would initially be convertible into approximately 19.8 percent of Synchronoss' common stock.

The sale of Intralinks is expected to close in mid-November 2017 and the sale of the preferred stock is expected to close in the first quarter of 2018. Both transactions are subject to closing conditions.

As part of the strategic review, Synchronoss determined it will focus on three core product segments - Cloud, Messaging and Digital Transformation.