Enterprise information management solutions provider OpenText on Monday announced the acquisition of email security company Zix for $860 million.
OpenText will acquire Zix for $8.50 per share in cash. Zix shares surged on October 19, after Reuters reported that the company had been “exploring strategic alternatives that include a sale of the company.”
Zix said the acquisition by OpenText will help it grow further, with the deal expected to result in more resources and product capabilities.
“Closing is subject to the tender of two-thirds of Zix’s common shares outstanding as well as customary regulatory approvals and other customary conditions, and the transaction is expected to close within 90 days of this announcement,” the companies said in a press release announcing the deal.
“Zix’s largest shareholder, an affiliate of True Wind Capital, L.P., has agreed, subject to satisfaction of certain conditions, to convert its Series A Preferred Shares into common shares and to tender those shares in the tender offer. Zix’s executive officers and certain directors have likewise agreed to tender their common shares in the tender offer.”
Zix provides email encryption, email threat protection, email message privacy, backup and recovery, information archiving, secure file sharing, and Microsoft 365 products.
The company claims to have 21,000 customers, including 1,200 healthcare organizations and 30% of banks in the United States.
Zix on Monday also released its financial report for the third quarter of 2021. The company reported an 18% increase in revenue compared to the same quarter of 2020. Its revenue reached nearly $65 million for the third quarter and $187.7 million year-to-date.