OpenText acquires Carbonite for $1.42 billion

Waterloo-based OpenText, an information management software company, officially confirmed its acquisition of Carbonite, a cloud-based data protection and security software solution provider.

The total purchase price is US$1.42 billion. Currently, outstanding Carbonite shares are set to be purchased for US$23.00 per share in cash, although this offer has not yet commenced. The acquisition cost also includes all of Carbonite’s outstanding debt.

Carbonite marks another key acquisition made by OpenText to enhance its security services. Through the acquisition, OpenText is looking to strengthen its security offerings in data loss prevention, digital forensics, endpoint security portfolio.

OpenText’s other significant acquisitions include Guidance, the makers of the enCase forensics software.

“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 Mark J. Barrenechea, OpenText chief executive officer. “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.”

In its press release, OpenText wrote that it expects a significant expansion of cloud revenues, cloud margins, and cash flows in fiscal 2021.

The transaction is expected to close within 90 days.

 

 

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Tom Li
Tom Li
Telecommunication and consumer hardware are Tom's main beats at IT World Canada. He loves to talk about Canada's network infrastructure, semiconductor products, and of course, anything hot and new in the consumer technology space. You'll also occasionally see his name appended to articles on cloud, security, and SaaS-related news. If you're ever up for a lengthy discussion about the nuances of each of the above sectors or have an upcoming product that people will love, feel free to drop him a line at tli@itwc.ca.

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now