Synchronoss Technologies, Inc. Will Acquire FusionOne

Synchronoss Technologies, Inc. will acquire privately-held FusionOne (News - Alert), Inc., in a deal which may reach up to $75 million, and is expected to close later this month.

Under the agreement, Synchronoss will pay approximately $40 million, consisting of approximately $32 million in cash and $8 million in Synchronoss stock.

Synchronoss may also pay up to an additional $35 million in cash and stock based on FusionOne's business achieving certain performance targets through 2011.

Dow Jones Newswires reported that the deal will expand Synchronoss' presence in the field of content-sharing software for cellphones.

FusionOne provides mobile content transfer and synchronization software, which enable end users the ability to make their content mobile across different types of devices.

FusionOne launched the industry's first fully automated mobile content backup service and has automated the mobile data synchronization process for millions of subscribers.

FusionOne also has over 40 issued and pending patents related to mobile content transfer and synchronization services.

"As connected devices continue to become a more important part of everyday life for consumers and business professionals, OEMs and carriers need to address the challenge of mobile content transfer and synchronization at the point of activation in order to retain and grow their subscriber base and revenue streams," Stephen G. Waldis, president and CEO of Synchronoss, said.

The deal makes strategic sense for Synchronoss - in terms of sales, marketing and adds to the company's intellectual property portfolio, the company says.

"Our customers and prospects have increasingly shared their desire to have mobile content transfer and synchronization technology as a core and integrated component of their activation process," added Mike Mulica (News - Alert), CEO of FusionOne. "We are at the early stages of rapid growth in the connected device market, and our combined organization and platform capabilities position us well to capitalize on this tremendous opportunity."

In recent news, Dell Inc. has selected Synchronoss Technologies' (News - Alert) ConvergenceNow Plus+ platform to enable on-demand activations of Dell's connected device portfolio, including Dell's first smart phone, designed on Google's Android (News - Alert) Operating System.