Carbonite, parent of Webroot, has been acquired by OpenText for $1.42 billion. The Carbonite buyout comes after several weeks of negotiations with multiple bidders -- including several private equity firms. The deal is expected to close within 90 days.
OpenText is an Enterprise Information Management (EIM) software and solutions company. The Carbonite acquisition extends OpenText in the SMB (small and midsize business) and professional consumer (prosumer) market, the companies noted.
Carbonite develops business continuity, backup and disaster recovery (BDR) and data protection solutions. The company's Webroot division, acquired earlier this year, provides endpoint and network security -- with a particularly strong following in the MSP (managed IT services provider) sector.
In a prepared statement, OpenText CEO and CTO Mark J. Barrenechea said:
"Cloud platforms and secured, smart end-points are essential Information Management technologies as businesses transform into Industry 4.0. 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. 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."
Added OpenText CFO Madhu Ranganathan:
"We entered Fiscal 2020 with a solid balance sheet and we are off to a strong start with the announced acquisition of Carbonite as part of our Total Growth strategy. We are excited by the opportunity to bring forth exceptional leadership in operational execution and integration capabilities to Carbonite. Once integrated, we expect to increase our annual recurring revenues, deliver strong cloud growth, and expand cloud margins and adjusted EBITDA. The resulting growth in cash flows will enable us to maintain a healthy balance sheet, deliver strong earnings, and continue to deliver consistent growth in dividends to shareholders."
OpenText's prepared statement did not say who will run the Carbonite business or how it will be organized. Carbonite has been seeking a CEO since the departure of Mohamad Ali in July 2019. Interim CEO Steve Munford has been running the company since that time.