Combined, the company will serve over 120 internet providers around the world, as well as more than 2,500 small business customers and 900 government customers. Zimbra also brings a network of some 1,000 value-added resellers and 500 hosting partners. Synacor said it will continue the open source version of Zimbra and plans on providing technical support for Zimbra's Open Source Edition through VAR partners around the world.
Around 140 employees will join Synacor as part of the takeover. The takeover, expected to close in the next 45 days, is valued at USD 24.5 million, with Synacor paying USD 17.3 million in cash, issuing 3 million shares, 0.6 million warrants priced at USD 3.00 per share, and paying up to USD 2 million in earn-outs over the next 18 months. Synacor raised its full-year financial guidance to reflect the contribution of Zimbra, and now expects revenues of USD 102-108 million, up from USD 970-102 million previously. Adjusted EBITDA is now estimated at USD 4-6 million, versus the earlier outlook of USD 3.5-5 million.
