Jones Day has advised Sequential Technology International (formerly known as Omniglobe International) in the acquisition of a portion of the activation business of Synchronoss Technologies Inc..
Synchronoss Technologies Inc. is unloading most of its activation business, a decision that will bring its data center in Bethlehem with hundreds of employees under the control of a new company.
The deal is expected to be finalized within the next few days, at which time the company’s activation workers will become Sequential Technology International employees, he added. The activation portion of the business provides services to carriers, such as AT&T, by activating smartphones and streamlining the process through a range of other offerings, including credit card billing, inventory management and trouble ticketing.
In the deal, Sequential Technology is purchasing 70 percent of Synchronoss’ carrier activation business for $146 million, with Synchronoss retaining a 30 percent stake that could be reduced in 2017. The proceeds from the transaction will help Synchronoss finance the acquisition of business networking provider Intralinks Holdings as the Bridgewater, N.J., company looks to grow its cloud, enterprise and software-driven offerings and shifts away from its legacy activation business.
The divestiture affects Synchronoss’ primary data center at 1555 Spillman Drive in Lehigh Valley Industrial Park VII in Bethlehem, which primarily handles the activation side of the company’s business after Synchronoss earlier this year moved about 100 engineering and information technology workers from LVIP VII to its headquarters in Bridgewater.
But Synchronoss also expanded its call center operation in Bethlehem, which kept the facility’s overall employment about the same, said Daniel Ives, the firm’s senior vice president of finance and corporate development. He said the company does not break down employment by location, but Synchronoss had more than 400 local employees by the time it moved its data center to LVIP VII in 2009.
Following the divestiture, the main change for the Bethlehem facility, Ives said, will be that Sequential will take over the lease. Synchronoss will still be a “key player,” Ives explained, but Sequential will “be at the top of the food chain” at its Lehigh Valley facility.
Jones Day has advised Sequential Technology International on the deal with a team led by partners Chris Kelly and Rachel Rawson (picture).
Law Firms: Jones Day;
Clients: Sequential Technology International;