Synacor Shares Rise On Centre Lane's $92M Acquisition, Upbeat Q4 Earnings

Investment firm Centre Lane Partners, LLC is set to acquire Synacor, Inc. (NASDAQ: SYNC) in an all-cash deal worth $92 million. The purchase price of $2.2 per share signifies a 13% premium to its last closing price.
Centre Lane will begin a tender offer to acquire the Synacor common stock in cash and acquire the remaining shares at the same price through a second-step merger. The transaction is expected to close by the second quarter of 2021.
Canaccord Genuity and Gunderson Dettmer are the financial advisor and legal advisor to Synacor, respectively.
Synacor reported revenue of $24 million as per its preliminary results for the fourth quarter of FY20, above its guidance range of $20 million to $22 million.
Double-digit growth in Zimbra Enterprise SaaS and Cloud ID SaaS revenue and marked recovery in the publisher advertising business drove the results.
EBITDA stood at $3.5 million, above its guidance between $2.5 million and $3.1 million.
The net income broke even, better than its net loss guidance between $0.5 million and $1.1 million.
Price action: SYNC shares are up 12.3% at $2.19 in the pre-market session on the last check Thursday.