180 Degree Capital Corp.’s Portfolio Company, Synacor, Inc., Agrees to Merge with Qumu Corporation in All-Stock Transaction...
February 11 2020 - 9:15AM
180 Degree Capital Corp. (“180”) (NASDAQ:TURN), notes that its
portfolio company, Synacor, Inc. (“SYNC”), today announced plans to
combine with Qumu Corporation (“QUMU”) in an all-stock transaction.
According to SYNC, the combined company is
expected to have over $120 million in annual revenue on a pro forma
basis. This will include an estimated $70 million in software
revenue, about 70% of which is recurring, and approximately $50
million in revenues from SYNC’s portal and advertising business.
SYNC stated that this estimate is based upon the mid-point of
SYNC’s current Full-Year 2019 guidance adjusted to exclude revenue
related to ATT.net as previously disclosed and adding QUMU’s
preliminary and unaudited Full-Year 2019 results.
SYNC also stated that the deal is expected to be
accretive on both an adjusted EBITDA and adjusted EPS basis in the
first fiscal year after close with expected annualized operational
synergies of $4 - $5 million and excluding purchase accounting
adjustments.
SYNC noted that, upon closing, SYNC stockholders
are expected to own approximately 64.4% and QUMU shareholders are
expected to own approximately 35.6% of the stock of the combined
company. After closing, the combined business will trade on
the Nasdaq under the ticker “SYNC”.
SYNC further noted that this transaction has
been unanimously approved by the Boards of Directors of both
companies and is expected to close mid-2020, subject to obtaining
required approval from the stockholders of both SYNC and QUMU, and
satisfaction of other customary closing conditions.
About 180 Degree Capital Corp.
180 Degree Capital Corp. is a publicly traded
registered closed-end fund focused on investing in and providing
value-added assistance through constructive activism to what we
believe are substantially undervalued small, publicly traded
companies that have potential for significant turnarounds.
Our goal is that the result of our constructive activism leads to a
reversal in direction for the share price of these investee
companies, i.e., a 180-degree turn. Detailed information
about 180 and its holdings can be found on its website at
www.180degreecapital.com.
Press Contact:Daniel B. Wolfe180 Degree Capital
Corp.973-746-4500
Forward-Looking Statements
This press release may contain statements of a
forward-looking nature relating to future events. These
forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. These
statements reflect the Company's current beliefs, and a number of
important factors could cause actual results to differ materially
from those expressed in this press release. Please see the
Company's securities filings filed with the Securities and Exchange
Commission for a more detailed discussion of the risks and
uncertainties associated with the Company's business and other
significant factors that could affect the Company's actual results.
Except as otherwise required by Federal securities laws, the
Company undertakes no obligation to update or revise these
forward-looking statements to reflect new events or uncertainties.
The reference and link to the website www.180degreecapital.com has
been provided as a convenience, and the information contained on
such website is not incorporated by reference into this press
release. 180 is not responsible for the contents of
third-party websites.
180 Degree Capital (NASDAQ:TURN)
Historical Stock Chart
From Aug 2024 to Sep 2024
180 Degree Capital (NASDAQ:TURN)
Historical Stock Chart
From Sep 2023 to Sep 2024