Security Experts:

Connect with us

Hi, what are you looking for?


Cloud Security

Zix to Acquire AppRiver for $275 Million in Cash

Email security solutions provider Zix on Tuesday announced that it has entered a definitive agreement to acquire AppRiver, a company that specializes in cloud-based cybersecurity and productivity services.

Email security solutions provider Zix on Tuesday announced that it has entered a definitive agreement to acquire AppRiver, a company that specializes in cloud-based cybersecurity and productivity services.

Zix will pay $275 million in cash for AppRiver, but the acquisition is expected to result in an annual recurring revenue of $180 million and an organic growth of 11-15% year-over-year in FY 2019.

Founded in 2002, AppRiver provides cloud-based web protection, email encryption, and secure archiving solutions that are used by over 60,000 companies around the world, with support from 4,500 managed service provider (MSP) resellers.

According to Zix, the AppRiver acquisition will help it improve its threat protection offering, expand its customer base, and accelerate its go-to-market strategy via AppRiver’s many channel partners.

“From a cross-selling standpoint, the acquisition provides attractive and abundant synergies at the onset, including the opportunity to drive stronger attach rates by attaching Zix’s solutions to AppRiver’s customer base, while also leveraging the lead generation potential of AppRiver’s Microsoft Office 365 suite to attach additional products to Zix’s installed base of customers,” said Zix CEO David Wagner.

“Financially, we expect to be able to realize approximately $8 million of cost savings from the combined business within approximately the first 12 to 18 months after closing, while also achieving significant scale and a larger footprint. In fact, the acquisition of AppRiver should more than double our revenue and adjusted EBITDA and scale our annual recurring revenue to more than $180 million, enabling us to maintain our ongoing commitment to profitable growth and prudent capital allocation objectives. Overall, this acquisition provides Zix with a more robust platform to further expand our growth and profitability, drive higher attach rates, scale our customer retention, and capture greater share of the multi-billion-dollar business communications market,” Wagner added.

Zix has also made some financing-related announcements, including a $100 million convertible preferred equity commitment from True Wind Capital and a $200 million debt commitment from SunTrust Bank and KeyBanc Capital Markets.

Related: ForeScout Acquires Industrial Security Firm SecurityMatters for $113 Million in Cash

Related: Check Point Acquires Web Application Security Startup ForceNock

Related: Mimecast Acquires Threat Detection Startup Solebit for $88 Million

Written By

Eduard Kovacs (@EduardKovacs) is a contributing editor at SecurityWeek. He worked as a high school IT teacher for two years before starting a career in journalism as Softpedia’s security news reporter. Eduard holds a bachelor’s degree in industrial informatics and a master’s degree in computer techniques applied in electrical engineering.

Click to comment

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

Join this webinar to learn best practices that organizations can use to improve both their resilience to new threats and their response times to incidents.


Join this live webinar as we explore the potential security threats that can arise when third parties are granted access to a sensitive data or systems.


Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Management & Strategy

SecurityWeek examines how a layoff-induced influx of experienced professionals into the job seeker market is affecting or might affect, the skills gap and recruitment...

Cloud Security

Microsoft and Proofpoint are warning organizations that use cloud services about a recent consent phishing attack that abused Microsoft’s ‘verified publisher’ status.

Cybersecurity Funding

SecurityWeek investigates how political/economic conditions will affect venture capital funding for cybersecurity firms during 2023.

Cloud Security

VMware vRealize Log Insight vulnerability allows an unauthenticated attacker to take full control of a target system.


Twenty-one cybersecurity-related M&A deals were announced in December 2022.

Management & Strategy

Industry professionals comment on the recent disruption of the Hive ransomware operation and its hacking by law enforcement.


More than 450 cybersecurity-related mergers and acquisitions were announced in 2022, according to an analysis conducted by SecurityWeek