Enterprise information management (EIM) firm OpenText this week announced it has entered a definitive agreement to acquire data protection and cybersecurity provider Carbonite, Inc.
Canada-based OpenText aims to help organizations accelerate growth, lower costs, and reduce security risks through business insight, both on premises and in the cloud. The company operates in 40 countries.
Founded in 2005, Carbonite provides a cloud-based subscription data protection, backup, and recovery solution for both businesses and consumers. With support for Windows and macOS, the solution allows users to back up documents, emails, music, photos, and settings.
In February this year, Carbonite acquired cybersecurity company Webroot for roughly $618.5 million in cash.
As part of the newly announced transaction, which is subject to customary closing conditions, OpenText has agreed to pay $23.00 per Carbonite share in cash, for a total purchase price of roughly $1.42 billion, including cash and debt.
Through this acquisition, OpenText aims to extend its security offerings in data loss prevention, digital forensics, and endpoint detection and response by adding Carbonite’s data protection and endpoint security solutions.
“We are excited by the opportunity to bring forth exceptional leadership in operational execution and integration capabilities to Carbonite. Once integrated, we expect to increase our annual recurring revenues, deliver strong cloud growth, and expand cloud margins and adjusted EBITDA,” OpenText EVP & CFO, Madhu Ranganathan, commented.
OpenText will commence the tender offer for all shares of Carbonite common stock within 10 business days and expects to close the transaction within 90 days.
Carbonite had J.P. Morgan Securities as financial advisor, and Skadden, Arps, Slate, Meagher & Flom as legal advisor.