Open Text Corp. (TSX:OTEX) confirmed Monday that it is buying Boston-based Carbonite Inc. in a deal valued at $1.42 billion U.S.
The deal, which includes debt, will see Open Text buy the data-protection company for $23 U.S. per share in cash. This represents a 25% premium to the share prices close last Friday. Carbonite’s shares are down 27% so far this year after a sharp fall in July after the company cut its annual revenue forecast.
Carbonite provides data backup, disaster recovery and other services to people and businesses, deriving most of its revenue from subscription fees. Open Text makes software used for searching corporate intranets and managing documents.
Waterloo-based Open Text expects the Carbonite transaction to close within 90 days, at which point financial projections will be provided. In 2017, Open Text acquired Dell Technologies Inc.’s enterprise content division for $1.6 billion U.S.
