Shares of Synchronoss Technologies (NASDAQ:SNCR) tumbled on Tuesday after its largest shareholder disclosed that an all-cash buyout was off the table. This news comes two months after the company first announced that it was reviewing strategic alternatives. The stock was down about 38% as of 11:30 a.m. EDT.
Siris Capital, which owns about 13% of Synchronoss, disclosed on Tuesday that it was no longer interested in an all-cash buyout. Synchronoss issued a statement in response to the news, saying that it "remains in active discussions with Siris Capital Group and other interested parties regarding a range of potential strategic transactions." Synchronoss is still exploring various options, including a sale of the company.
Shares of Synchronoss have tumbled this year, down about 74% year to date after Tuesday's rout. The company announced in April that its CEO and CFO were stepping down after just a few months on the job, and in May it announced a delay in filing its first-quarter report. Synchronoss pointed to issues with its financial statements, saying that it needed time to review certain transactions.
It's still unclear how deep the company's accounting issues go. The loss of buyout interest from Siris Capital could mean the firm found something it didn't like -- enough to derail a deal. Siris remains a major shareholder, though, and it says it's open to other forms of transactions.
With Synchronoss still working to file its first-quarter report, investors are learning that securing a buyout during an accounting review is easier said than done.