OpenText has entered into a definitive agreement to acquire the data protection and cybersecurity company, Carbonite, for $23.00 per Carbonite share in cash. The transaction is valued at approximately $1.42 billion.
Carbonite’s third-quarter results saw its revenue rise to $125.6 million, which was a 62% year-over-year increase. Its Non-GAAP revenue of $135 million also increased 71% year-over-year.
Mark J. Barrenechea, OpenText’s CEO and CTO, said that the acquisition will strengthen the company as the leader in cloud platforms. The company will also stand to gain in end-point security and protection space through Carbonite’s products.
The executive was very positive in his statement and said that the company was expecting an increase in its annual recurring revenues, cloud growth, and expansion in its cloud margins after the integration.
Steve Munford, the interim CEO and President/Executive Chairman of the Board of Carbonite said: “Carbonite has expanded its solutions to become a leader in cyber resiliency. We have grown through both organic and inorganic opportunities over the years, enhancing our routes to market, diversifying our customer base, and assembling a talented workforce, while adding meaningful scale. Joining with OpenText is an exciting next step for Carbonite.”
J.P. Morgan acted as the financial advisor for Carbonite for this deal.