Dallas based Zix Corp which is into the business of offering email security has officially announced that it is going to acquire cloud security firm AppRiver for $275 million. Zix which is known among healthcare, finance, and government organizations as a solutions provider for BYOD, data loss prevention and email encryption is expected to leverage the technology acquired from AppRiver to boost its ecosystem of MSPs and Microsoft Office 365 partners.
“We will strongly focus on integrating the 2 businesses to accelerate growth via channel partners and cross-selling and hope to see an increase in the profit scale on a parallel note”, said David Wagner, the CEO of Zix.
As SMBs data and app migrations to the cloud are still in the early stage, the acquisition of the cloud security company is said to help Zix’s partners and customers in safeguarding their workloads to off-premise systems added David.
As of now, there is no news on what will happen to the team members of AppRiver after the acquisition. However, the recent press release from Zix says that the company will rework on the AppRiver’s revenue model to improve the business on profits scale.
More details on the deal are expected to be revealed at the next quarterly earnings call scheduled for February 28th, 2019. Also, a team of executives is expected to disclose the details of the deal at the RSA Security Conference to be held in San Francisco from March 4th- to 8th of this year.