The company that likely activated your iPhone and provides electronic order management solutions to service providers, Synchronoss Technologies ─ out of Bridgewater, NJ. ─ announced today its agreement to acquire privately held Wisor Telecom for approximately $18 million in cash.
Wisor Telecom, based in Frederick, MD, provides software and service solutions that enable its clients to manage, execute and provision their end customers with automation order accuracy.
The acquisition expands Synchronoss’ customer and technology footprint, in particular related to service provider-to-service provider automation. It also augments the company’s global R&D and operations capabilities.
The addition of Wisor expands Synchronoss’ domestic and international carrier footprint, which the company believes will provide the opportunity for faster deployments of its ConvergenceNow order management platform. Wisor’s client base includes Sprint, Verizon Wireless, Embarq, Time Warner Telecom, Global Crossing and British Telecom, among others.
Stephen G. Waldis, president and chief executive officer of Synchronoss Technologies said, “We believe our acquisition of Wisor Telecom is positive for the company, as well as our customers and shareholders. The addition of Wisor’s solution will expand Synchronoss’ technology footprint to over 90% of all major carriers in the U.S. We believe the significant expansion of our platform’s carrier integration capabilities will enable Synchronoss to drive higher automation rates in a shorter period of time for our customers.”
The company currently expects the transaction to close this Monday, Sept. 15, and be neutral to its non-GAAP earnings per share for the full year 2008. However, Wisor’s Web site is already forwarded to Synchronoss’.
This announcement comes two days after The Rosen Law Firm in New York announced it is investigating potential civil securities fraud claims against Synchronoss concerning allegations that Synchronoss issued materially false and misleading statements about its contract to provide in-store activation of iPhones during the time period Feb. 4, 2008 through June 9, 2008.
On June 10, 2008, Synchronoss said it would not participate in the on-site, retail store activations associated with the 3G iPhone and acknowledged that it had been aware of this material development since at least May, when it had issued revised financial guidance.
As a result of this adverse disclosure, the Rosen Law Firm is preparing a class action lawsuit against Synchronoss for violation of the anti-fraud provisions of the federal securities laws.
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