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Synchronoss Technologies (SNCR) Buys NewBay From Research In Motion (RIMM)

 December 27, 2012 04:26 PM
 


(By Balaseshan) Synchronoss Technologies Inc. (NASDAQ: SNCR), a provider of on-demand transaction management solutions, said it has purchased NewBay from the BlackBerry maker Research In Motion Ltd. (NASDAQ: RIMM) for $55.5 million in cash.

Synchronoss expects the acquisition will be neutral to slightly accretive, on a non-GAAP basis, to its full year 2013 financial results. Additionally, for GAAP purposes, Synchronoss expects to incur a restructuring charge in the first quarter of 2013 related to the acquisition of NewBay.

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NewBay focuses 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. There was no assumption of cash or debt.

NewBay's European customers include a group level implementation at Vodafone 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.

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Synchronoss' mobile content cloud platform will be able to leverage many capabilities developed by NewBay, including those related to illicit content protection, legal intercept, copyright, antivirus and transcoding among others.

The transaction closed at the end of the fourth quarter of 2012. Synchronoss will provide additional financial details related to the NewBay acquisition on its fourth quarter financial results conference call, which is expected to occur in early February.

RIM acquired NewBay in October 2011 for reportedly around $100 million. When RIM bought it in late 2011, NewBay had over 80 million subscribers. NewBay stores media on its own servers and delivers it to any Internet-connected device, including mobile phones, personal computers and tablets, according to a Reuters report on August 11.

SNCR closed Thursday's regular session down 0.49% at $20.49, while RIMM ended down 0.55% at $11.76.

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