Synchronoss Technologies Inc. (NASDAQ: SNCR) saw its shares take a big step back, almost touching a multiyear low, after the firm provided an update on its strategic alternatives. In simpler terms, its largest shareholder, Siris Capital Group, announced that it is no longer interested in buying out Synchronoss.
However, the company is still open to other alternatives, which may include the sale of the company or other transactions.
Currently, Siris owns roughly 6 million Synchronoss shares, or about 13% of the float.
In the Synchronoss’ release, it said:
The Company remains in active discussions with Siris Capital Group and other interested parties regarding a range of potential strategic transactions. The Board will carefully consider all options and make a decision that reflects the best interest of all shareholders, although there can be no assurance as to whether or not any transaction will take place, the structure of such a transaction, or the ultimate timing.
Excluding Tuesday’s move, the stock was down 56% year to date. However in just the past quarter, the stock is up 56%. So there has been a very big swing in this time, to say the least. Shares are even at a level not seen since 2009.
Shares of Synchronoss were last seen down more than 38% at $10.31, with a consensus analyst price target of $19.83 and a 52-week range of $10.11 to $49.94.