Synchronoss Technologies Announces Acquisition of NewBay

  Synchronoss Technologies Announces Acquisition of NewBay

Business Wire

BRIDGEWATER, N.J. -- December 27, 2012

Synchronoss Technologies, Inc. (NASDAQ: SNCR), the mobile innovation company
that provides activation and mobile content management solutions for connected
devices, today announced that it has acquired NewBay, a wholly owned
subsidiary of Research in Motion Limited. NewBay is a leader 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.

In consideration for the acquisition, Synchronoss paid $55.5 million in cash
to Research in Motion Limited, and there was no assumption of cash or debt.
The transaction closed at the end of the fourth quarter of 2012.

"By adding NewBay's technology assets and millions of subscribers, this
transaction further establishes Synchronoss as the clear leader in providing
cloud based mobile content services for mobile operators around the world. By
combining our strengths, Synchronoss will deliver the most comprehensive,
scalable and secure cloud platform, and we will significantly expand our early
market share leadership position,” said Stephen G. Waldis, Chief Executive
Officer of Synchronoss.

Waldis added, “We are excited to bolster our international presence through
the acquisition of NewBay, including a major European mobile operator in the
early stages of a significant planned expansion. Additionally, we welcome
other international customers that will be new to Synchronoss. We believe that
the combination of NewBay and Synchronoss will further ensure the success of
the significant cloud services launch being prepared at Verizon Wireless,
which remains on schedule.”

NewBay provides an open, white label software platform that powers cloud-based
services for storing, sharing, accessing and organizing digital content across
any Internet connected device. The company’s technology platform empowers
customers to deliver user content services such as social networking, digital
vault, photo and video albums, network address book, notification and
converged messaging services. 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. In addition, joint customers will benefit from
Synchronoss’ proven track record of taking best-of-breed technologies and
scaling them to the highest levels demanded by Tier 1 carriers in order to
deliver a world class customer experience.

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.

Synchronoss expects the acquisition will be neutral to slightly accretive, on
a non-GAAP basis, to its full year 2013 financial results. Non-GAAP results
exclude stock-based compensation expense, amortization of intangibles
associated with acquisitions, non-recurring professional fees associated with
closing acquisitions and the purchase accounting reduction to deferred revenue
associated with acquired companies. Additionally, for GAAP purposes,
Synchronoss expects to incur a restructuring charge in the first quarter of
2013 related to the acquisition of NewBay.

The company will provide additional financial details related to the NewBay
acquisition on its fourth quarter 2012 financial results conference call,
which is expected to occur in early February. At this time, the company will
also provide revenue and profitability expectations, including contribution
from NewBay, for both the first quarter and full year 2013. Additionally,
Synchronoss plans to host its first analyst and investor day at the company’s
headquarters in New Jersey during mid-February. Details for both the fourth
quarter financial results conference call and analyst and investor day will be
issued in subsequent press releases.

About Synchronoss Technologies, Inc.

Synchronoss Technologies (NASDAQ: SNCR) is the mobile innovation company that
provides software-based activation and mobile content management solutions for
connected devices across the globe. The company’s proven and scalable
technology solutions allow customers to connect, synchronize and activate
connected devices and services that empower enterprises and consumers to live
in a connected world. For more information visit us at:

Web: www.synchronoss.com
Blog: http://blog.synchronoss.com
Twitter: http://twitter.com/synchronoss

This document may include certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, plans, objectives,
expectations and intentions and other statements contained in this press
release that are not historical facts and statements identified by words such
as "expects," "anticipates," "intends," "plans, " "believes," "seeks,"
"estimates," “aims ” "outlook" or words of similar meanings. These statements
are based on our current beliefs or expectations and are inherently subject to
various risks and uncertainties, including those set forth under the caption
"Risk Factors" in Synchronoss' Annual Report on Form 10-K for the year ended
December 31, 2011 and other documents filed with the U.S. Securities and
Exchange Commission. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors. Synchronoss does not undertake any
obligation to update any forward-looking statements contained in this document
as a result of new information, future events or otherwise.

Synchronoss and the Synchronoss logo, are trademarks of Synchronoss
Technologies, Inc. All other trademarks are property of their respective
owners.

Contact:

Synchronoss Technologies, Inc.
Investor:
Brian Denyeau, 646-277-1251
investor@synchronoss.com
or
Media:
Stacie Hiras, 908-547-1260
Stacie.hiras@synchronoss.com
 
Press spacebar to pause and continue. Press esc to stop.