Why Synchronoss Technologies, Inc. Stock Skyrocketed (Again) Today

Markets Motley Fool

What happened

Continue Reading Below

Shares of Synchronoss Technologies (NASDAQ: SNCR) were up 34.7% as of 11:30 a.m. EDT Friday after the company received an acquisition offer.

So what

More specifically -- and keeping in mind Synchronoss stock also popped 13% yesterday after the company staged an encouraging financial presentation to its lenders -- this morning Synchronoss confirmed that it received a "non-binding indication of interest" from private equity firm Siris Capital to acquire the company for $18 per share in cash.

Now what

That offer represents a nearly 48% premium to yesterday's close, and leaves shares up around 55% this week alone. At the same time, Synchronoss is still well off its 52-week high set late last year at just under $50 per share.

Continue Reading Below

To be sure, Synchronoss has had a tough year, first pulling back from those lofty levels as investors initially frowned upon the announcement of its enormous acquisition of Intralinks Holdings (NYSE: IL). Shares crashed again in April, and continued to decline through May as Synchronoss' CEO and CFO left following the company's painful first-quarter performance

Let it suffice to say, then, that this acquisition offer isn't exactly the premium for which longtime Synchronoss investors had hoped. And the offer could either go up from here or the deal could fall through -- the company has insisted it will "carefully review" Siris' interest and "pursue the course of action that it believes is in the best interests" of both itself and shareholders. It's no surprise to see Synchronoss stock trading within 8% of the proposed deal price today.

10 stocks we like better than Synchronoss Technologies
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Synchronoss Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 5, 2017

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.