Shares of Synchronoss Technologies (NASDAQ:SNCR) surged on Monday after the company provided an update on its strategic alternatives process. This comes about two weeks after the stock tumbled on news that the company's largest shareholder, Siris Capital, was not interested in an all-cash buyout. As of 12:27 p.m. EDT, Synchronoss stock was up 15.9%.
Synchronoss has been considering strategic alternatives for a few months, a decision that was prompted by a string of bad news earlier this year. The CEO and CFO both resigned in April, following first-quarter results that came in far below expectations. In June, Synchronoss disclosed that it needed to restate its financial statements for 2015 and 2016. The stock was down 76% year to date prior to Monday's surge.
Synchronoss' update contained little new information. The company disclosed that Siris Capital informed the company that it would terminate discussions regarding a potential transaction unless it obtained exclusive negotiation rights. Synchronoss decided against an exclusivity agreement.
The company says there is continued interest from parties other than Siris, and that it has received proposals that are attractive compared to the most recent proposal from Siris. No timeline was given on when a decision would be made.
With the largest shareholder out of the picture, Synchronoss' options have narrowed. The company sounded optimistic in its press release, emphasizing that multiple parties remain in talks with the company. That optimism was enough to send the stock soaring.
Whether Synchronoss will ultimately reach some sort of deal is still up in the air. If the company fails, Monday's gains could disappear as quickly as they came.