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Synchronoss to sell cloud software unit to Siris in $1 billion deal

Published 10/17/2017, 08:51 AM
© Reuters.  Synchronoss to sell cloud software unit to Siris in $1 billion deal

(Reuters) - Software maker Synchronoss Technologies Inc said private equity firm Siris Capital Partners would buy its Intralinks Holding unit in a deal worth about $1 billion, higher than it previous offer.

Siris, already Synchronoss' top shareholder, will also invest $185 million in the company in the form of convertible preferred equity, equal to a stake of nearly 20 percent in the software maker.

Synchronoss shares were up nearly 11 percent at $15.23 in premarket trading on Tuesday.

The company said Siris will pay it about $977 million for Intralink, a cloud-based business software provider, and an additional contingent payment of up to $25 million.

Siris had in June offered to buy Intralink for nearly $835 million in cash, but pulled its offer in September, and a month later Synchronoss said it got better offers from multiple parties.

Siris and Synchronoss resumed talks on a potential deal worth up to $915 million on Oct. 6.

Synchronoss had bought Intralinks for $821 million in 2016.

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