Stock Entry Point Article​

OpenText acquires Canada’s Carbonite

Canadian software developer OpenText has agreed to acquire US cybersecurity company Carbonite. The buyer will pay $800 million in cash, or $23.00 per Carbonite share.

The price is a 25% premium to the target’s trading close on November 8. The agreed price also represents a 78% premium to the closing price on September 5, the last trading day before Bloomberg reported on the strategic review.

This gives Carbonite an enterprise value of $1.42 billion, debt included.

As per usual, the deal is subject to customary closing conditions and regulatory approvals. Part of the conditions include the tendering of all Carbonite shares.

Following the announcement, Carbonite cancelled the third quarter results conference call on November 12. The company also announced its financial results for the third quarter of 2019.

Carbonite reported revenue of $125.6 million from $77.7 million, up 62% year-on-year. Non-GAAP revenue stood at $135 million, an increase of 71% compared to the same period last year.

In February, Carbonite bought endpoint security company Webroot for $618.5 million in cash. Last year, the developer acquired cloud backup company Mozy for $145 million.

In 2017, Open Text paid $1.6 billion for the enterprise content subsidiary of Dell. The company also considered a takeover offer for rival developer Micro Focus International.

Carbonite was advised on by J.P. Morgan Securities, while Skadden, Arps, Slate, Meagher & Flom acted as legal advisor.

OpenText shares are up more than 30% year-to-date.


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