Zix CEO David Wagner believes SMB customer migrations to the cloud are still in the early innings — providing ample time for the security software company to help partners and customers safeguard workloads as they shift to off-premises systems. He also sees ample opportunity for channel partners in those migrations.
In a prepared statement about the deal close, Wagner said:
“We will focus on integrating the two businesses, accelerating our growth through channel partners and cross-selling, and increasing our profitability through cost synergies and improved attach rates.”
Zix Business Size, Focus, Competition
The combined company expects to have $200 million to $207 million in annual recurring revenue for 2019, which represents an organic growth rate of approximately 11% to 15% year-over-year.
Still, Zix has not disclosed which AppRiver team members will remain with the company. Moreover, Zix has indicated that it will rework AppRiver’s cost model a bit to improve that business’s profitability. Read between the lines and that likely means two things: Less emphasis on helping MSPs to resell Office 365, and some potential AppRiver staff consolidation, ChannelE2E believes. (Note: Those are just our best guesses.)