Synchronoss Technologies to acquire IntraLinks for US$821m in equity to speed ‘strategic transformation’

Synchronoss Technologies, Inc, and Intralinks Holdings, Inc. have entered into a definitive agreement for Synchronoss to acquire Intralinks for approximately $821 million in equity value.

Under the terms of the agreement, Synchronoss will commence a cash tender offer to acquire all of the outstanding common stock of Intralinks for $13.00 per share. The transaction, which was unanimously approved by the board of directors of both companies, is expected to close late in the first calendar quarter of 2017, subject to customary closing conditions.

Ron Hovsepian, CEO of Intralinks, is expected to be appointed CEO of Synchronoss and join the Synchronoss Board of Directors upon closing of the transaction with Synchronoss’ founder and current chief executive officer, Stephen G. Waldis will move into the role of active executive chairman of the Board.

Ron Hovsepian, CEO of Intralinks
Ron Hovsepian, CEO of Intralinks

In Intralinks’ 20-year history, over 4.1 million business users across the world have used its secure, cloud-based platform, and it counts 99% of Fortune 1000 companies among its customers. To date, Intralinks has supported over $31 trillion in high-stakes transactions, making the company a leader in the enterprise content collaboration market.

“Intralinks has established itself as a household name in the financial services world over the past 20 years, with a keen focus on growing its presence into the next generation secure content collaboration market over the coming years,” said Stephen Waldis, Synchronoss’ CEO.

“This acquisition marks another major step in the transformation of Synchronoss to significantly expand the scale and scope of the company’s enterprise initiatives and strong carrier relationships in attacking this multi-billion dollar market opportunity. Ron brings significant leadership experience and a history of successfully integrating companies into a single portfolio. I intend to stay active in the company, driving growth opportunities and continued developments on new product innovation. I am excited to be working closely with Ron to bring Synchronoss into its next chapter of growth”.

il-logo-2016“Our board of directors unanimously concluded that Synchronoss is the ideal strategic partner for Intralinks and also gives our employees and customers the opportunity to leverage Synchronoss’ deep relationships across the carrier space, cloud expertise, and strong partnerships in the financial services vertical,” said Ron Hovsepian, CEO of Intralinks.

“Together with Synchronoss, we believe we can deploy enhanced enterprise and mobile solutions to our customers while opening up new enterprise distribution channels across the world.”

In conjunction with today’s announcement Synchronoss is also announcing an agreement to divest a portion of its activation business to Sequential Technology International, LLC for a total purchase price of $146 million. As part of this transaction, Sequential Technology will purchase 70% of Synchronoss’ carrier activation business that is being divested, with Synchronoss retaining a 30% ownership piece which could be reduced during the course of 2017. Synchronoss is in the process of pursuing strategic alternatives for the remaining activation business assets.

Stephen Waldis, Synchronoss’ CEO
Stephen Waldis, CEO, Synchronoss

Synchronoss expects to finance the Intralinks acquisition with its existing cash, proceeds from the Sequential Technology transaction, and $900 million of new debt.

Given the expected closing in the first calendar quarter of 2017, Synchronoss expects the Intralinks transaction to have no impact to its fourth quarter financials. With the impact from the Sequential Technology divestiture and assuming a late first quarter 2017 close on the Intralinks deal, Synchronoss is giving initial 2017 revenue guidance of between $810 million and $820 million with pro forma EPS of between $2.45 and $2.60 for the combined entity. The company is targeting $40 million of combined synergies within a year of closing the Intralinks deal.

The Intralinks transaction is subject to the satisfaction of customary closing conditions, including regulatory approval in the United States. Until the transaction closes, each company will continue to operate independently.

Comment on this article below or via Twitter: @ VanillaPlus OR @jcvplus

RECENT ARTICLES

Hughes enhances MENA satellite connectivity with Nilesat partnership

Posted on: March 18, 2024

Hughes Network Systems (HUGHES), an EchoStar company has announced that Nilesat has purchased a Hughes JUPITER System Gateway and will use Hughes JUPITER terminals for its Nilesat 301 satellite. The

Read more

Nokia unveils in-wall ONT for enhanced enterprise optical LAN connectivity

Posted on: March 15, 2024

Nokia has announced the launch of a new in-wall ONT for enterprise optical local area network (LAN) connectivity. The new product delivers gigabit speeds to provide a reliable, fast and

Read more