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OpenText Completes Carbonite, Webroot Acquisition: 5 Things to Know

OpenText has completed the Carbonite acquisition, which includes the Webroot business. OpenText, an enterprise-focused information management software company, gains cloud-based data protection, backup, disaster recovery and endpoint security software that MSPs promote to small and midsize businesses (SMBs). The deal’s value: $1.45 billion.

Here are five things to know about the deal.

1. Extending From Enterprise Into SMB: OpenText CEO Mark J. Barrenechea reinforced the deal’s ability to extend his company down into the SMB and so-called prosumer markets.

2. MSP Partner Focus: Carbonite was working on an integrated MSP partner program ahead of the company sale to OpenText. The partner program will give MSPs simplified engagements across the Carbonite data protection and Webroot cybersecurity technology portfolios. Details are expected in February 2020 or so.

3. Malware and Data Protection: The Webroot business unit, in particular, has a strong following among MSPs. The Carbonite combination seeks to give MSPs a turnkey way to detect, block and/or recover from ransomware and other types of malware attacks. Carbonite acquired Webroot in March 2019 with that 360-degree protection goal in mind. But the journey remains a work in progress. Carbonite had a financial hiccup on the data protection side of its business in mid-2019, and the company sale to OpenText surfaced a few months later.

4. Executive Leadership: Carbonite’s executive leadership team is no longer listed on the company’s website. Instead, the leadership team link re-routes to OpenText’s board of directors. Also, OpenText did not mention who will lead the Carbonite business under OpenText’s ownership. Details are expected after the holidays. In the meantime, MSPs should expect to see and hear from familiar leaders on the Carbonite side of the business, ChannelE2E believes.

5. Competition: Overall, we expect Carbonite to compete more aggressively against data protection businesses in the SMB market. But the competitive set is fierce — including AcronisAsigraAxcientBarracuda MSP, ConnectWise’s Continuum BusinessDattoKaseyaMSP360StorageCraft and Veeam. On the security side of the house, the Webroot team has a strong MSP installed base. But rivals such as SentinelOne (partnering with SolarWinds, ConnectWise and Continuum), BlackBerry Cylance and CrowdStrike are striving to engage more MSPs. Also, keep an eye on the Dell-VMware-Carbon Black trio at the higher-end of the market. And Sophos, soon to be owned by private equity firm Thoma Bravo, also has a strong MSP following.

6. Bonus – Next Moves: Carbonite’s Webroot arm typically surfaces at major MSP conferences throughout the year. Keep an eye open for activity at such gatherings as Datto DattoCon 2020 and ConnectWise IT Nation Connect 2020, among others.

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