Waterloo-based software company OpenText has announced plans to acquire American data backup and protection firm Carbonite in a $1.88 billion CAD ($1.42 billion USD) deal.
OpenText said the deal would help expand within the enterprise information management (EIM) market through Carbonite’s cloud-based data protection and end-point security solutions. The acquisition is also intended to add to OpenText’s cloud business.
“This acquisition will further strengthen OpenText as a leader in cloud platforms, complete end-point security and protection.”
“This acquisition will further strengthen OpenText as a leader in cloud platforms, complete end-point security and protection, and will open a new route to connect with customers, through Carbonite’s marquee SMB/prosumer channel and products,” said OpenText CEO and CTO Mark Barrenechea. “Cloud platforms and secured, smart end-points are essential information management technologies as businesses transform into Industry 4.0.”
“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,” Barrenechea added.
As part of the acquisition deal, OpenText will pay $23 USD per share in cash for a total of $800 million USD. That combined with Carbonite’s debt, which OpenText also acquires, brings the deal to$1.88 billion CAD. The transaction is expected to close within 90 days of the announcement.
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This latest acquisition marks OpenText’s seventh acquisition since 2017. Its list of acquired companies includes Colorado-based software company Catalyst Repository Systems, announced in February, and Georgia-based information integration provider Liaison, which was completed in January.
OpenText’s other acquisitions include California-based HighTail, California-based Guidance Software, San Francisco-based Recommind, and Dell EMC’s Enterprise Content Division, as well as Documentum for $1.62 billion USD.
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