Synacor IPO Could Fetch $94M

Synacor Inc. , a TV Everywhere services specialist that counts Charter Communications Inc. and CenturyLink Inc. (NYSE: CTL) as its largest customers, is inching toward an initial public offering (IPO) that could raise up to $94 million.

In an ammended S-1 form filed with the Securities and Exchange Commission (SEC) on Monday, Synacor revealed plans to register 7.84 million shares and price them at $10 to $12 each.

Synacor originally anticipated raising about $75 million when it filed its initial S-1 in November 2011. The company declined to say when it intends to pull the trigger on an IPO, but its roadshow is getting underway today, a Synacor spokeswoman said. Synacor expects to trade on the Nasdaq under the "SYNC" ticker. (See Synacor Guns for $75M IPO .)

In its updated preliminary numbers, Synacor said net income for 2011 will be as high as $4.2 million, versus a $3.3 million loss for 2010, on revenues up to $91.0 million, an increase that could reach 37.5 percent. Fourth-quarter revenues will be in the range of $28.5 million to $28.9 million, up 56.6 percent to 58 percent from the year-ago period, thanks to a boost in ad impressions and new service provider customers. Synacor ended the year supporting 21.8 million customers.

Synacor provides hosted broadband applications and TV Everywhere aggregation portals to MSOs and telco TV service providers. Charter and CenturyLink accounted for 60 percent of Synacor's 2010 revenues at the end of 2010 (it has yet to update that figure for 2011).

Synacor also revealed in the filing that it put up $1.1 million earlier this month to purchase the assets of Carbyn Inc., an Ontario-based company that's developed an HTML5 application platform. Synacor said the deal will help it develop Web apps for mobile devices. As a result, seven Carbyn employees have joined Synacor Canada, a newly formed, wholly owned subsidiary.

— Jeff Baumgartner, Site Editor, Light Reading Cable