Why Shares of Synchronoss Technologies Are Slumping Today

Shares of Synchronoss Technologies (NASDAQ: SNCR) tumbled on Wednesday, one day after the company announced that it was selling its Intralinks business for roughly $1 billion. This sale ends Synchronoss' strategic alternatives process after a year of drama that has sent the stock on a roller-coaster ride. At 11:15 a.m. EDT, Synchronoss stock was down about 11.5%.

Synchronoss has agreed to sell its Intralinks business to Siris Capital Group. Under the deal, Siris will also make a $185 million investment in Synchronoss in the form of convertible preferred stock. This stock will initially be convertible into 19.8% of Synchronoss' common stock.

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Source: Fool.com