Synchronoss Announces Sale Of Messaging And NetworkX Businesses To Lumine Group As Part Of Ongoing Strategic Alternatives Review Process For Total Consideration Of Up To $41.8M
Portfolio Pulse from Benzinga Newsdesk
Synchronoss Technologies (SNCR) has announced the sale of its Messaging and NetworkX businesses to Lumine Group (TSXV:LMN) for up to $41.8 million. This move is part of an ongoing strategic review process aimed at maximizing shareholder value. The sale will allow Synchronoss to focus on its cloud business and improve its capital structure. The company expects gross margins of over 70% and adjusted EBITDA margins of over 25% by the end of fiscal year 2024. B. Riley Financial (RILY), Synchronoss' largest shareholder, supports the transaction.
November 01, 2023 | 12:02 pm
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NEUTRAL IMPACT
B. Riley Financial, as Synchronoss' largest shareholder, supports the sale of the Messaging and NetworkX businesses to Lumine Group.
As the largest shareholder, B. Riley Financial's support for the transaction is a positive sign. However, the direct impact on B. Riley Financial is not clear from the news.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Synchronoss' sale of its Messaging and NetworkX businesses to Lumine Group is expected to unlock additional value in its cloud business and improve its capital structure.
The sale of these businesses allows Synchronoss to focus on its cloud business, which has been a consistent source of growth. The proceeds from the sale will also improve the company's capital structure.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Lumine Group has acquired Synchronoss' Messaging and NetworkX businesses, expanding its portfolio of businesses.
The acquisition of these businesses expands Lumine Group's portfolio and brings in an experienced leadership team and a strong, global customer network.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100