Synchronoss Tech concludes review of strategic alternatives, will divest its Intralinks Holdings subsidiary for approximately $1 bln (13.72)
The co announced that its Board 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.
- Under the terms of the definitive agreements, investment funds affiliated with Siris Capital Group, LLC will acquire all of the stock of the Company's wholly-owned subsidiary, Intralinks Holdings, Inc., for approximately $1 billion in consideration and 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% of Synchronoss' common stock.
- The acquisition of the Company's Intralinks business will be made pursuant to a share purchase agreement between Synchronoss and Siris, under which Synchronoss has agreed to sell its wholly-owned subsidiary, Intralinks Holdings, Inc., to Siris for consideration consisting of cash in the amount of approximately $977 million and an additional contingent payment of up to $25 million in cash. Synchronoss previously acquired Intralinks on January 19, 2017 for a purchase price of approximately $821 million.
- The Siris convertible preferred equity investment in Synchronoss in the amount of $185 million is comprised of cash and stock. The stock portion consists of 5,994,667 shares of Synchronoss common stock that Siris previously purchased. The preferred stock will be convertible into shares of common stock at an initial conversion price of $18.00 per share, provided that the number of shares of common stock issuable upon conversion shall initially be capped at 19.9% of Synchronoss's issued and outstanding common stock.