“I would like to thank them for what they have built over the past 18 years,” Zix CEO David Wagner said during the company’s quarterly earnings call on Thursday. “They began with a cloud-based email security product and a deep commitment” to partners such as MSPs.
AppRiver’s History and Zix Next Moves
Zix CEO David Wagner
The AppRiver business over the past decade evolved to include hosted Exchange to which AppRiver has a 100% attach rate for advanced email security, Wagner noted. And more recently, AppRiver developed a large Office 365 practice as one of the first two-tier distributors and now the second largest provider of Microsoft Modern Workplace Solutions, he added.
Amid the M&A deal, Zix has implemented roughly $8 million in cost reductions. The savings, according to Wagner, include approximately:
$2 million per year of executive compensation and expenses;
$2 million of third-party cost synergies redundant expenses like PR firms, advertising firms, legal fees and accounting; and
$4 million of headcount reductions as a result of approximately 40 employee job cuts that were balanced across Zix and AppRiver.