Investors are racing to buy Synchronoss Technologies, Inc. (NASDAQ:SNCR) shares in after-hours trading Thursday. The reason? The mobile cloud maker and private-equity firm Siris determined to restart discussions regarding a potential buyout transaction. Those discussions included improved terms compared to the previous offer. Previously, Siris was in position to buy Synchronoss for $18 a share.
Following those discussions, the Board determined it was in the best interest of Synchronoss shareholders to enter into an agreement with Siris providing for a limited period of exclusivity to allow for negotiation of definitive agreements.
As of this writing, Synchronoss shares are rising over 20% to $13.12 in pre-market trading Thursday.
The Company noted that there can be no assurance as to whether or not any transaction will take place, the structure of such a transaction, or the ultimate timing. The Board remains committed to maximizing shareholder value and will carefully consider all available options and make a decision that reflects the best interests of all shareholders.
Siris Capital is Synchronoss’s largest shareholder, with holdings of 6 million shares, or 12.9% of the shares outstanding.
On the ratings front, SNCR stock has been the subject of a number of recent research reports. In a report issued on September 20, Deutsche Bank analyst Nandan Amladi maintained a Hold rating on SNCR, with a price target of $10, which reflects a potential downside of -7% from last closing price. Being more critical, Raymond James’ Tavis McCourt downgraded the stock to Sell on September 19.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nandan Amladi and Tavis McCourt have a yearly average return of 9.2% and 9.1% respectively. Amladi has a success rate of 57% and is ranked #691 out of 4699 analysts, while McCourt has a success rate of 63% and is ranked #534.
Synchronoss is a mobile innovation company, which provides cloud solutions and software-based activation for connected devices globally. Its solutions include activation and provisioning software for devices and services, cloud-based sync, backup, storage and content engagement capabilities, broadband connectivity solutions, analytics, identity and access management and secure mobility management that enable communications service providers, cable operators or multi-services operators and original equipment manufacturers with embedded connectivity, multi-channel retailers, medium and large enterprises and their consumers as well as other customers to accelerate and monetize value-add services for secure and broadband networks and connected devices.