Synchronoss Technologies buys RIM's cloud services unit
Dec 27 (Reuters) - Software maker Synchronoss Technologies Inc said it bought NewBay, the cloud services unit of Research In Motion Ltd , for $55.5 million in cash.
NewBay's software allows users to store, share and access digital content across any device connected to the Internet. Synchronoss helps companies manage the activation, synchronization and management of connected devices.
"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," Synchronoss Chief Executive Stephen Waldis said in a statement.
NewBay's European customers include Vodafone Group Plc , Swisscom AG and T-Mobile. Its customers in the United States include AT&T Inc and Verizon Communications Inc.
Synchronoss expects the acquisition to be neutral or slightly accretive to its full year 2013 financial results on an adjusted basis.
The company also expects a restructuring charge in the first quarter of 2013 related to the acquisition.
Synchronoss' shares closed at $20.49 on the Nasdaq on Thursday. They were at $20.43 in after-market trading.