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. (http://bit.ly/2y44qie)
Synchronoss had bought Intralinks for $821 million in 2016.
(Reporting by Supantha Mukherjee and Sonam Rai in Bengaluru; Editing by Anil D’Silva and Savio D’Souza)