Synchronoss expands with FusionOne buy

Synchronoss Technologies Inc. has acquired FusionOne Inc. for $40 million in order to expand its business offerings for wireless service providers. Synchronoss provides transaction management software, including order provisioning and management services, while FusionOne provides software to help operators transfer customer content and synchronization technology. Together, the company can offer carriers more of a one-stop shop solution, said Omar Tellez, CMO for Synchronoss.
“As connected devices continue to become a more important part of everyday life for consumers and business professionals, OEMs and carriers need to address the challenge of mobile content transfer and synchronization at the point of activation in order to retain and grow their subscriber base and revenue streams. The combination of FusionOne’s capabilities with Synchronoss’ industry leading ConvergenceNow Plus+ platform creates the most comprehensive and powerful mobility customer experience available in the market,” said Synchronoss CEO Stephen Waldis in a prepared statement.
The acquisition, which is expected to close this month, will be a cash and stock transaction. Synchronoss will pay privately held FusionOne $32 million in cash and $8 million in stock. Synchronoss may also pay up to an additional $35 million in cash and stock based on FusionOne meeting certain performance targets.
Both companies have impressive operator relationships. Synchronoss targets telecom operators, cable operators and original equipment manufacturers. Some of its customers are AT&T, Time Warner Cable, Comcast Corp., Dell Inc. and Apple Inc. For its part, FusionOne does business with AT&T, Verizon Wireless, Cellular South and others.
Being able to go to an operator, order and activate new services and products and transfer your content from one device to another should result in an easier customer relationship mangement experience, which more likely means a satisfied customers, Tellez said. Synchronoss does all the behind-the-scenes work in order management, activation and provisioning, working with the operator’s BSS/OSS solutions to validate the customer information on the back end and working with device provisioning companies, like Brightpoint Inc. and Brightstar Corp. to deliver the devices to the end user. FusionOne’s technology enables the end user’s content, pictures, contact lists, etc., to be transferred in the background so it can be delivered during offpeak times.