OpenText to acquire Carbonite in $1.4B deal

OpenText to acquire Carbonite in $1.4B deal

The acquisition, valued at about US$1.42 billion including debt, is expected to close within 90 days

Credit: Dreamstime

OpenText will buy cloud security company Carbonite for nearly US$800 million in cash, the companies have revealed.

Canada's OpenText, a business information management software company, will pay US$23.00 per share to Carbonite shareholders. The acquisition, valued at about US$1.42 billion including debt, is expected to close within 90 days.

OpenText said the deal represents nearly 78 per cent premium to Carbonite's closing price on 5 September, the last trading day before a media report about the sale process.

Carbonite's shares were up 24.5 per cent in premarket trading.

The deal will complement OpenText's security offerings in data-loss prevention and digital forensics, the company said.

The acquisition also adds significantly to OpenText’s cloud business and further complements the vendor's routes to market.

“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," OpenText CEO and CTO Mark J. Barrenechea said.

"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.”

J.P. Morgan Securities LLC was Carbonite's financial adviser on the deal, and Skadden, Arps, Slate, Meagher & Flom LLP its legal adviser.

(Reporting by Akanksha Rana in Bengaluru; Editing by Maju Samuel; with ARN)

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