Fast-moving deal gives Canadian content management company backup and security capabilities
Carbonite defrosted quickly following news that it was in advanced acquisition talks. Canada-based OpenText announced it’s buying the backup and security vendor for $1.42 billion.
The Lowdown: OpenText is paying a premium for Boston-based Carbonite, which commands a broad set of data backup and protection capabilities that address the needs of enterprises to consumers.
The Details: In the announcement, OpenText disclosed no plans for how it will incorporate Carbonite’s capabilities with its existing enterprise information and content management solutions. The acquisition is subject to regulatory review and approval.
Background: OpenText acquiring Carbonite ends a year of tremendous change and upheavals at the Boston-based company.
In March, Carbonite acquired security vendor Webroot for $618 million, giving it proactive endpoint capabilities that complemented its backup products.
In July, Mohamad Ali stepped down from Carbonite’s CEO post to assume the chief executive post at tech publishing and analyst firm IDG. Steve Munford was named interim CEO. Also in July, Craig Stilwell, the longtime channel chief at Citrix, joined Carbonite as the chief revenue officer.
In September, Carbonite revamped its executive team with the addition of John Post as Chief Operating Officer; Chad Bacher as Chief Product Officer; Hal Lonas as Chief Technology Officer; and Scott Semel as Interim General Counsel. Around the same time, Carbonite announced it was seeking potential suitors to acquire the company.
On Friday, reports began circulating that Carbonite was in advanced talks with potential acquirers, including several private equity firms that could take it private.
The Buzz: “Following expressions of interest from multiple parties, the Carbonite board conducted a thorough and comprehensive process, which included contact with a number of strategic and financial parties, to identify the best way to maximize shareholder value,” said Munford, interim CEO, as well as president and executive chairman of Carbonite’s board. “The board strongly believes that a transaction with OpenText delivers compelling, immediate, and substantial cash value to shareholders.