OpenText, a Canada’s Information Management Software service offering company has made it official that it is going to acquire Cloud Security vendor Carbonite for $1.42 Billion. Trade analysts say that the deal will prove lucrative for Carbonite as its share value was jacked up by 25% premium bringing it close to $23 at the close of the market on November 8th, 2019.
What’s interesting about the deal is that ‘OpenText’ has bagged the deal along with Carbonite’s newly acquired company Webroot for $618.5 Million in cash.
The Ontario based company expects to boost sales of its 300,000 SMB customers with the acquisition deal and is looking to expand cloud revenues and cash flows by the end of the fiscal year 2021.
In recent months, there were n- number of speculations about Carbonite being acquired by some US-based Tech giants and that includes private equity firms Vector Capital and KKR.
Note- Carbonite witnessed a $14 million net loss in the 3Q financial report which is against the $600,000 gain over the same period last year.
“Following expression of interest from several financial parties, Carbonite has decided to accept the offer of OpenText as the deal delivers compelling, immediate and substantial cash value to shareholders”, said Steve Munford, Interim Chief, and Executive Officer and President of Board, Carbonite.
As OpenText happens to be a leader in Enterprise Information Management Software, both on-premises and for cloud, it expects the technology of Carbonite will help expand OpenText business strategies into Cloud Security and the Cyber World.