|[December 27, 2012]
Synchronoss Technologies Announces Acquisition of NewBay
BRIDGEWATER, N.J. --(Business Wire)--
Synchronoss Technologies, Inc. (NASDAQ: SNCR), the mobile innovation
company that provides activation and mobile content management solutions
for connected devices, today announced that it has acquired NewBay, a
wholly owned subsidiary of Research in Motion (News - Alert) Limited. NewBay is a
leader in cloud services, enabling mobile operators and service
providers to deliver content experiences across connected devices such
as smartphones, tablets, PC's and TV's. NewBay's cloud services are
delivered to millions of user and stores billions of media files for
live operator services around the world.
In consideration for the acquisition, Synchronoss paid $55.5 million in
cash to Research in Motion Limited, and there was no assumption of cash
or debt. The transaction closed at the end of the fourth quarter of 2012.
"By adding NewBay's technology assets and millions of subscribers, this
transaction further establishes Synchronoss as the clear leader in
providing cloud based mobile content services for mobile operators
around the world. By combining our strengths, Synchronoss will deliver
the most comprehensive, scalable and secure cloud platform, and we will
significantly expand our early market share leadership position," said
Stephen G. Waldis, Chief Executive Officer of Synchronoss.
Waldis added, "We are excited to bolster our international presence
through the acquisition of NewBay, including a major European mobile
operator in the early stages of a significant planned expansion.
Additionally, we welcome other international customers that will be new
to Synchronoss. We believe that the combination of NewBay and
Synchronoss will further ensure the success of the significant cloud
services launch being prepared at Verizon (News - Alert) Wireless, which remains on
NewBay provides an open, white label software platform that powers
cloud-based services for storing, sharing, accessing and organizing
digital content across any Internet connected device. The company's
technology platform empowers customers to deliver user content services
such as social networking, digital vault, photo and video albums,
network address book, notification and converged messaging services.
Synchronoss' mobile content cloud platform will be able to leverage many
capabilities developed by Neway, including those related to illicit
content protection, legal intercept, copyright, antivirus and
transcoding among others. In addition, joint customers will benefit from
Synchronoss' proven track record of taking best-of-breed technologies
and scaling them to the highest levels demanded by Tier 1 carriers in
order to deliver a world class customer experience.
NewBay's European customers include a group level implementation at
Vodafone (News - Alert) Group, in addition to Orange, Swisscom, T-Mobile; U.S.
customers include AT&T, T-Mobile, Verizon and US Cellular; and AsiaPac
customers include LG Electronics and Telstra (News - Alert).
Synchronoss expects the acquisition will be neutral to slightly
accretive, on a non-GAAP basis, to its full year 2013 financial results.
Non-GAAP results exclude stock-based compensation expense, amortization
of intangibles associated with acquisitions, non-recurring professional
fees associated with closing acquisitions and the purchase accounting
reduction to deferred revenue associated with acquired companies.
Additionally, for GAAP purposes, Synchronoss expects to incur a
restructuring charge in the first quarter of 2013 related to the
acquisition of NewBay.
The company will provide additional financial details related to the
NewBay acquisition on its fourth quarter 2012 financial results
conference call, which is expected to occur in early February. At this
time, the company will also provide revenue and profitability
expectations, including contribution from NewBay, for both the first
quarter and full year 2013. Additionally, Synchronoss plans to host its
first analyst and investor day at the company's headquarters in New
Jersey during mid-February. Details for both the fourth quarter
financial results conference call and analyst and investor day will be
issued in subsequent press releases.
About Synchronoss Technologies, Inc.
Synchronoss Technologies (NASDAQ: SNCR) is the mobile innovation company
that provides software-based activation and mobile content management
solutions for connected devices across the globe. The company's proven
and scalable technology solutions allow customers to connect,
synchronize and activate connected devices and services that empower
enterprises and consumers to live in a connected world. For more
information visit us at:
Twitter (News - Alert):
This document may include certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, plans,
objectives, expectations and intentions and other statements contained
in this press release that are not historical facts and statements
identified by words such as "expects," "anticipates," "intends," "plans,
" "believes," "seeks," "estimates," "aims " "outlook" or words of
similar meanings. These statements are based on our current beliefs or
expectations and are inherently subject to various risks and
uncertainties, including those set forth under the caption "Risk
Factors" in Synchronoss' Annual Report on Form 10-K for the year ended
December 31, 2011 and other documents filed with the U.S. Securities and
Exchange Commission. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors. Synchronoss does not
undertake any obligation to update any forward-looking statements
contained in this document as a result of new information, future events
Synchronoss and the Synchronoss logo, are trademarks of Synchronoss
Technologies, Inc. All other trademarks are property of their respective
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