11 November 2019, India:

OpenText announced today that it has entered into a definitive agreement to acquire cyber-security firm Carbonite, Inc for $1.42 billion.

The acquisition of Carbonite is expected to extend OpenText’s leadership in the Enterprise Information Management (EIM) market by complementing OpenText’s security offerings in data loss prevention, digital forensics, end-point detection and response with the addition of Carbonite’s data protection and end-point security solutions, the company said in a statement.

Mark J. Barrenechea, CEO & CTO, OpenText, 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.”

Mark J. Barrenechea, added, “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.”

Madhu Ranganathan, EVP & CFO, OpenText, said, “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.”

Madhu Ranganathan, added, “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.”

(Image – OpenText)

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