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Cable Operators

Synacor Preps Public Outing

2/06/2012 12:01 AM Eastern

Synacor, a provider of TV Everywhere
services and Web-portal software
to cable and telecom operators, expects to
raise up to $75 million in an initial public
offering — which would be one of the
first IPOs in the video-technology
space in recent memory.

The company, which originally filed
for the IPO in mid-November, last week
disclosed expected pricing of $10 to $12
per share for 6.82 million shares (including
1.36 million shares owned by
selling stockholders, from which Synacor
not receive any proceeds). In addition,
underwriters will have the option
to purchase up 1 million shares at a discount
from the offering price.

Other video and TV-related technology
firms that have filed for IPOs in
the last year include encoding-equipment vendor
Envivio and mobile-video provider MobiTV.

Synacor declined requests for executive interviews,
citing quiet-period restrictions. After
the IPO, the company expects its shares
will trade on the NASDAQ Global Market under
the symbol “SYNC.”

Historically, Charter Communications and
CenturyLink have been Synacor’s two biggest
customers, together accounting for 62% and
60% of its revenue for the years ended 2009 and
2010, according to the IPO filing. The company
also has signed Dish Network and Verizon
Communications and Toshiba as clients.

Synacor cites its main competition as inhouse
information technology staffs at MSOs
and telcos that roll their own Web solutions.
Other competitors include major portal operators
Yahoo, Google, AOL and MSN.

But Google is also a major partner: Synacor
includes a Google-branded search tool on the
websites of customers, and the Internet search
giant accounted for approximately 55% of Synacor’s
revenue, or $34 million, for the nine
months ended Sept. 30, 2011.

SYNACOR: AT A GLANCE

Description: Provider of content-aggregation and authentication
solutions for cable and telecom service providers and consumerelectronics
manufacturers.

Customers: Charter, CenturyLink, Dish Network, Verizon, Suddenlink,
Mediacom, Toshiba

Users: 18.7 million unique visitors per month in Q4 2011 (comScore)

Financials: Full-year 2011 revenue of $90.6 million to $91.0
million and net income of $3.8 million to $4.2 million

Headquarters: Buffalo, N.Y.
Employees: 261

SOURCE: Company reports

September