Carbonite has agreed to a $1.42 billion purchase by OpenText, an enterprise information management giant, ending weeks of speculation about the anticipated buyout.The deal marks a 78% premium on Carbonite share price on September 5, when it was first rumored the company was preparing to buy the backup and data recovery company.
Carbonite said the board &strongly believes& the deal will return &substantial& cash value to shareholders, said Steve Munford, chairman of Carbonite board.It ends a busy couple of years for Carbonite as the company has moved away from a traditional data backup business to a more proactive, defensive security company.InFebruary, Carbonite bought endpoint security company Webroot for $618.5 million in an all-cash deal, as the company pushed to protect against emerging threats like ransomware.
Only a year earlier, Carbonite bought Mozy for $145 million, a cloud backup service.Carbonite said at the time of its acquisition by OpenText the backup company had losses of $14 million on revenues of $125.6 million, an increase by 62% year-over-year.Wall Street was expecting average revenues of $131.5 million.An earlier version of this story said Carbonite made $125.6 billion in revenue.
This was in error — the figure should have been in millions.
We regret the error.Carbonite to acquire endpoint security company Webroot for $618.5M