Software maker Synchronoss to buy Intralinks for $821 million

(Reuters) - Synchronoss Technologies Inc SNCR.O, which makes customer service software for mobile carriers, said on Tuesday it would buy cloud-based business software provider Intralinks Holdings Inc IL.N for $821 million in cash.

Synchronoss’ offer of $13 per share represents a 15.4 percent premium to Intralinks’ Monday close.

Intralinks’ shares were up 15.3 percent at $12.99 in premarket trading on Tuesday.

Synchronoss also said it would divest a portion of its activation business to Sequential Technology International LLC for $146 million.

The company has been exploring strategic alternatives for the business, which manages back-end systems of communication service providers.

Ron Hovsepian, who heads Intralinks, is expected to be named chief executive of the combined company after the deal closes.

Synchronoss’ founder and current CEO, Stephen Waldis, will become executive chairman.

The company said it expects to finance the deal with its existing cash, proceeds from the Sequential Technology transaction and $900 million of new debt.

Intralinks, which has over 90,000 clients, provides confidential cloud-based software that enables companies to securely manage, control, track, search, exchange and collaborate on sensitive information.

Synchronoss also said it expected 2017 revenue between $810 million and $820 million, compared with the average analyst estimate of $818.5 million, according to Thomson Reuters I/B/E/S.

Reporting by Anya George Tharakan in Bengaluru; Editing by Martina D’Couto