Synacor, Inc. (SYNC)

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Synacor to acquire certain assets from Zimbra for ~$24.5 mln, raises FY15 guidance

4:55 PM ET 8/18/15 | Briefing.com

The co announced it has entered into a definitive agreement to acquire certain assets from Zimbra, Inc., a global leader in open source email, calendaring, and collaboration software. The acquisition of Zimbra talent, technology and patents will extend Synacor's leadership in ISP solutions, will accelerate the company's expansion in enterprise and international markets, and will strengthen Synacor's financial profile and competitiveness. The Zimbra acquisition is expected to close within 45 days. The transaction is valued at approximately $24.5 million, with Synacor paying $17.3M in cash, issuing 3M shares, 0.6M warrants priced at $3.00 per share, and paying up to $2M in earn-outs over the next 18 months.
Synacor raises its FY15 revenue guidance to $102-108 mln vs. prior guidance of $97-102 mln and the current single analyst estimate of $100 mlnSynacor also raises its FY15 EBITA guidance to $4-6 mln from prior guidance of $3.5-5 mln