OpenText to Acquire Carbonite

Published On: November 25, 2019Categories: Buzz, Uncategorized

OpenText, a Waterloo, Ontario company specializing in Enterprise Information Management software, has announced plans to acquire Carbonite, Inc., a provider of cloud-based subscription data protection, backup, disaster recovery and end-point security to small and medium-sized businesses and consumers.

Through the tender offer, OpenText intends to pay $23 per share for Carbonite stock for a total purchase price of approximately $1.42 billion, inclusive of Carbonite’s cash and debt. The transaction is expected to close within 90 days, at which point financial projections and target models will be provided.

“Cloud platforms and secured, smart end-points are essential Information Management technologies as businesses transform into Industry 4.0,” said Mark J. Barrenechea, OpenText CEO & CTO. “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.”

“We entered Fiscal 2020 with a solid balance sheet and we are off to a strong start with the announced acquisition of Carbonite as part of our total growth strategy,” added OpenText EVP & CFO, Madhu Ranganathan. “Once integrated, we expect to increase our annual recurring revenues, deliver strong cloud growth, and expand cloud margins and adjusted EBITDA.”

Channel Impact®
The acquisition of Carbonite is expected to extend OpenText’s leadership in the Enterprise Information Management (EIM) market by complementing OpenText’s security offerings in data loss prevention, digital forensics, end-point detection and response with the addition of Carbonite’s data protection and end-point security solutions. The acquisition also adds significantly to OpenText’s Cloud business.

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