Shares of Synchronoss Technologies Inc. (NASDAQ:SNCR) climbed 28.7% in the month of June, according to data provided by S&P Global Market Intelligence, after the managed mobility solutions specialist received an $18-per-share cash acquisition offer from Siris Capital Group.
Synchronoss shares popped nearly 35% on June 23, 2017, when it disclosed the offer. And that move followed a 13% jump the previous day after Synchronoss provided a financial presentation to its lenders to assuage concerns over recently lost business from AT&T (NYSE:T) and Verizon (NYSE:VZ).
Both significant pops more than offset a big plunge earlier last month after the company’s Securities and Exchange Commission filings revealed its financial statements for both 2015 and 2016 will need to be restated. But that wasn’t entirely surprising in the wake of Synchronoss’ decision to delay its official first-quarter earnings report in May, which followed the surprising departures of both its CFO and CEO and a warning of weaker-than-expected first-quarter results in late April.
As it stands, Synchronoss hasn’t provided an update on whether it will accept Siris Capital’s offer, so investors can only assume its board is continuing to “carefully review” the deal as promised to ensure it’s in the best interests of everyone involved. That may not be the case with Synchronoss stock still down more than 57% so far in 2017 as of this writing. But rest assured I’ll be watching closely to see how this story unfolds.
Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Verizon Communications. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.
– Stock investment