Synacor And Qumu To Merge, Creating Firm With $120 Million In Revenue

Synacor, an email and cloud identity/access management provider, will merge with enterprise video company Qumu Corp. in an all-stock deal, the companies announced on Tuesday.

The combined company will have over $120 million in annual revenue on a pro forma basis -- including $70 million from software & services, $50 million of which would be recurring, and $50 million from continuing portal and advertising segment revenue.

Each share of Qumu common stock will be converted into roughly 1.61 shares of Synacor common stock. Synacor stockholders are expected to own 64.4% and Qumu shareholders 35.6%.

Synacor common stock including shares issued in the merger, will trade on the Nasdaq under the ticker “SYNC”.

The deal, which is expected to close in mid-2020, will result in $4 million to $5 million in annualized operating synergies in the first fiscal year after closing.

"Together with Qumu, we will be a software-focused business with about $50 million of high-margin recurring revenue, positioned in the attractive collaboration product segments of email, identity, and video," states Himesh Bhise, CEO of Synacor.

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Bhise will continue serving as CEO of Synacor and Tim Heasley as CFO. Vern Hanzlik, the CEO of Qumu, will join Synacor as chief revenue officer, Software & Services.

Synacor) is a cloud-based software and services company serving video, internet and communications providers, device manufacturers, governments and enterprises globally.

Qumu Corporation (Nasdaq: QUMU) provides tools to create and measure live and on-demand video for the enterprise.

Canaccord Genuity is acting as financial advisor and Gunderson Dettmer as legal advisor to Synacor. Stifel Financial is serving as financial advisor and Ballard Spahr LLP as legal advisor to Qumu.

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