Cloud backup provider Carbonite to be acquired for $1.4 billion

The $1.42 billion deal, led by OpenText, is subject to customary closing conditions


Carbonite, a Boston-based provider of cloud-based data backup and cybersecurity software, is to be acquired by OpenText, a Canadian provider of Enterprise Information Management (EIM) software and solutions, for $23 (£18) per Carbonite share in cash.

The deal is worth $1.42 billion (£1.1bn, €1.2bn), which is a 78 per cent premium on Carbonite’s stock price on 5 September 2019, the last trading day before a media report was published speculating about a potential sale process.

The transaction is subject to customary closing conditions, including the tender of a majority of the outstanding shares of Carbonite common stock and regulatory approvals.

“Following expressions of interest from multiple parties, the Carbonite Board conducted a thorough and comprehensive process, which included contact with a number of strategic and financial parties, to identify the best way to maximise shareholder value," said Steve Munford, interim chief executive officer and president/executive chairman of the board of Carbonite.

The board “strongly believes” that a transaction with OpenText delivers “compelling, immediate and substantial cash value” to shareholders.

OpenText is a leader in EIM, both on-premises and for cloud services, offering the only complete solution for EIM with a comprehensive view of all the information within an organisation. The company operates in 40 countries, providing a tested platform for growth and new sales opportunities.

Carbonite’s revenue increased 62 per cent year-over-year to $125.6 million in the third quarter ending 30 September 2019.

FURTHER READING: Business software group SAP signs three-year cloud contract with Microsoft

FURTHER READING: IBM partners with Bank of America to build specific financial cloud

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image