FusionOne, Inc. acquired by Synchronoss Technologies
Addition of Mobile Synchronization Software Enables the Most Powerful Mobility Experience
BRIDGEWATER, N.J. and San Jose, C.A. –(BUSINESS WIRE)-Synchronoss Technologies, Inc. (NASDAQ: SNCR), the leading global provider of on-demand transaction management software platforms, today announced that it has entered into an agreement to acquire privately-held FusionOne, Inc., the established leader in mobile content transfer and synchronization technology. Upon closing of the acquisition, Synchronoss will pay approximately $40 million, consisting of approximately $32 million in cash and $8 million in Synchronoss stock. Synchronoss may also pay up to an additional $35 million in cash and stock based on FusionOne’s business achieving certain performance targets through 2011. Synchronoss expects the transaction to close during July 2010.
Stephen G. Waldis, President and Chief Executive Officer of Synchronoss, said “As connected devices continue to become a more important part of everyday life for consumers and business professionals, OEMs and carriers need to address the challenge of mobile content transfer and synchronization at the point of activation in order to retain and grow their subscriber base and revenue streams. The combination of FusionOne’s capabilities with Synchronoss’ industry leading ConvergenceNow® Plus+ platform creates the most comprehensive and powerful mobility customer experience available in the market.”
FusionOne is the established leader in mobile content transfer and synchronization software enabling end users the ability to make their content truly mobile across different types of devices. FusionOne launched the industry’s first fully automated mobile content backup service and has automated the mobile data synchronization process for millions of subscribers on a global basis. The company’s technology vision and leadership is reinforced by over 40 issued and pending patents related to mobile content transfer and synchronization services, and it has built out support for over 600 handset models ported across all major mobile platforms. FusionOne has sold subscription services and licenses to many communication service providers, including Verizon Wireless, Cellular South, CenturyLink, Bell Mobility and AT&T among others.
Synchronoss believes its acquisition of FusionOne is compelling for a number of reasons, including:
Acceleration of Synchronoss’ overall connected devices growth strategy
Highly synergistic extension to Synchronoss’ value proposition to OEMs and carriers
Proven, scalable platform and strong intellectual property portfolio
Advancement of Synchronoss’ customer diversification efforts
Further expansion of Synchronoss’ value proposition in the retail channel
Attractive financial characteristics
Synchronoss expects the transaction to be at least neutral to its non-GAAP results for the second half of 2010, and to be accretive in 2011. Excluding the anticipated purchase accounting reduction to FusionOne’s deferred revenue, Synchronoss currently expects FusionOne to contribute approximately $8 million to $10 million to the company’s non-GAAP revenue in the second half of 2010. Management will provide updated 2010 guidance that includes the expected financial impact of FusionOne when it announces second quarter 2010 financial results.
Upon completion of the acquisition, Synchronoss’ non-GAAP results will exclude stock-based compensation expense, in addition to amortization of intangibles associated with acquisitions, non-recurring professional fees associated with closing acquisitions, acquisition-related earn-out compensation and consideration and the purchase accounting reduction to deferred revenue associated with acquired companies.
Mike Mulica, Chief Executive Officer of FusionOne, said “Our customers and prospects have increasingly shared their desire to have mobile content transfer and synchronization technology as a core and integrated component of their activation process. We are at the early stages of rapid growth in the connected device market, and our combined organization and platform capabilities position us well to capitalize on this tremendous opportunity. Today’s announcement is great news for our respective customers, prospects and employees, and I look forward to helping our combined organization realize its full potential.”
About Synchronoss Technologies, Inc.
Synchronoss Technologies (NASDAQ: SNCR) is the leading global provider of on-demand transaction management technology. The company’s ConvergenceNow®, ConvergenceNow® Plus+T and InterconnectNowT technology platforms enable communication service providers, cable operators, retailers/e-tailers and OEMs to automate subscriber activation, order management and provisioning of connected devices, across any network from any distribution channel. For more information visit us at:
The Synchronoss logo, Synchronoss, ConvergenceNow, InterConnectNow and ConvergenceNow Plus+ are trademarks of Synchronoss Technologies, Inc. All other trademarks are property of their respective owners.
About FusionOne, Inc.
FusionOne is the established leader in mobile content portability, helping mobile subscribers transfer their content between mobile devices and sharing their content with popular internet applications. FusionOne pioneered mobile phone content transfer and its products, including Handset Transfer Solution and Network Address Book, currently support millions of subscribers on many major carriers worldwide. FusionOne’s products have managed and protected over 1.5 billion phone contacts, providing the foundation for the world’s largest social network. Founded in 1998, FusionOne is headquartered in San Jose, California with additional offices in Tallinn, Estonia. For more information, visit www.fusionone.com.
FusionOne, MightyBackup and MightyPhone are trademarks of FusionOne, Inc. All other product, service and company names are trademarks, registered trademarks or service marks of their respective owners.