Synacor said it sold 5.75 million shares of common stock that produced net proceeds of $18.5 million after deducting the underwriting discounts and commissions and other expenses tied to the offering.
Syancor announced on April 6 that it would sell the shares for $3.50 each, and that it had granted the underwriters a 30-day option to purchase 857,250 additional shares of common stock.
Synacor, the maker of TV Everywhere authentication systems and personalized Web portals and a supplier of hosted email services, announced earlier that the offering would be used to strengthen its balance sheet and enable it to acquire or finance on more attractive terms, equipment and to make other capital investments needed to support additional customers and to deliver additional services to existing customers.
Synacor might also use a portion of those net proceeds to acquire or invest in complementary business, though it stressed that it’s “not currently planning or negotiating any such transactions.”
Canaccord Genuity and Needham & Company acted as joint book-running managers.
Synacor ended its Q4 2016 with $14.3 million in cash and cash equivalents.