In an amended filing from this morning, Synchronoss Tech (SNCR 16.63, +4.45 +36.5%) shareholder Siris Capital Group affirmed its 12.93% active stake in the company as well as delivering a letter to management indicating their belief that Siris could acquire SNCR for an all-cash deal at $18.00 per share.
The offer comes only a few months after Siris disclosed an active stake in SNCR. On May 5, 2017 Siris announced a 12.93% active stake in SNCR at the same time it was looking to engage in talks for a potential transaction.
Part of the aforementioned letter read, “Based on meetings with management and certain confidential information received under NDA, we believe we could be in a position to deliver compelling and certain value to Synchronoss shareholders through an all-cash acquisition at $18.00 per share, which would represent an attractive 69% premium to the Company’s closing stock price of $10.65 on June 21, 2017. Our proposal is subject to customary due diligence, including a review of outstanding shareholder litigation and Synchronoss’s financial statements, as well as the negotiation and execution of a transaction agreement acceptable to you and us.”
Siris went on to say that it is prepared to make good on the intent in the letter within six weeks. Siris also mentioned it has engaged legal counsel, and gave indications it could engage financial and accounting advisors should the deal come to fruition.
Then, moments ago SNCR announced the company did in fact receive takeover interest from Siris and stated that it will review the offer.
The news of the deal comes a day after SNCR provided a corporate update on its business as well as proposing an amendment to its senior credit facility. Among the highlights of that presentation, management noted that the Q1 revenue miss was mostly due to new opportunity in the enterprise business with a core customer that did not develop in the period. The company still holds meaningful deals with the likes of Verizon (VZ) and AT&T (T).