Software provider OpenText has entered into a definitive agreement to acquire Carbonite for $23 per Carbonite share in cash, valued at US$1.42 billion, in a move to bolster its cloud business.
“Following expressions of interest from multiple parties, the Carbonite board conducted a thorough and comprehensive process, which included contact with a number of strategic and financial parties, to identify the best way to maximize shareholder value,” said Steve Munford, interim CEO, president and executive chairman of the board of Carbonite, in a statement.
“The board strongly believes that a transaction with OpenText delivers compelling, immediate and substantial cash value to shareholders.”
Munford said joining OpenText is “an exciting next step” for Boston-based Carbonite.
NEWS ANNOUNCEMENT:— OpenText (@OpenText) November 11, 2019
OpenText has entered into a definitive agreement to acquire Carbonite Inc. provider of #cloud based data protection, backup, disaster recovery & end-point #security to small/medium businesses.@Carbonite
Read the release here: https://t.co/XshTua5Dq3
Operating in 40 countries, Ontario, Canada-based OpenText specialises in enterprise information management (EIM) for on-premises and cloud services. The company said it has the only complete offering for EIM with a comprehensive view of all the information within an organisation.
“Cloud platforms and secured, smart endpoints are essential information management technologies as businesses transform into Industry 4.0,” said Mark J. Barrenechea, OpenText CEO and CTO, in a statement.
“This acquisition will further strengthen OpenText as a leader in cloud platforms, complete endpoint security and protection, and will open a new route to connect with customers through Carbonite’s marquee SMB channel and products. We are very excited about the opportunities that Carbonite will bring, and I look forward to welcoming our new customers, partners and employees to OpenText.”
OpenText said it will leverage Carbonite to extend OpenText’s leadership in the EIM market by complementing OpenText’s security offerings in data loss prevention, digital forensics, endpoint detection and response with the addition of Carbonite’s data protection and endpoint security offerings. The acquisition also adds to OpenText’s cloud business and complements OpenText’s routes to market, strong enterprise customer base in the global 10,000, enhanced SMB and prosumer markets.
The acquisition is expected to close within 90 days.
In February 2019, Carbonite secured an acquisition itself in endpoint security company Webroot for US$618 million.