Carbonite, Inc. is now a wholly owned subsidiary of OpenText, which paid $23.00 per share in cash for a total purchase price of approximately $1.45 billion, inclusive of Carbonite’s cash and debt, at 2.9x TTM 

WATERLOO, ON – December 24, 2019 – / – OpenText™ (NASDAQ: OTEX) (TSX: OTEX), “The Information Company,” announced today that it has completed the closing of the previously announced acquisition of Carbonite, Inc. (“Carbonite”), provider of cloud-based subscription data protection, backup, disaster recovery and endpoint security to small and medium-sized businesses and prosumers.

Mark J. Barrenechea
Photo: Mark J. Barrenechea

“I am delighted to announce today the completion of the Carbonite acquisition and warmly welcome Carbonite customers, partners, and employees to OpenText. Combined, we will be able to provide our customers the first end-point platform that offers data protection, endpoint security, intrusion detection and digital forensics – ensuring cyber resiliency and trusted innovation,” said Mark J. Barrenechea, OpenText CEO & CTO. “Carbonite brings a world-class channel organization and partners, allowing OpenText to bring EIM to all size customers including SMB to prosumers.”

Barrenechea further added, “We have confidence in our ability to integrate, innovate and grow the business.  As previously highlighted, we are targeting for Carbonite to be on our operating model by the end of Fiscal 2021, or sooner. We expect strong cloud growth and cash flow expansion from the acquisition.”

Photo: Carbonite Boston Headquarters

Preliminary Financial Overview
OpenText expects Carbonite to contribute no material revenue or operating expenses over the holiday season between December 24th and 31st, within the current quarter (Fiscal 2020 Q2). Further financial projections from OpenText, as well as updated target models, will be provided when the company reports its second quarter Fiscal 2020 financial & business results.

Terms of the Acquisition

  • The tender offer for all outstanding Carbonite shares for $23.00 per share in cash is now complete, Carbonite is now a wholly-owned subsidiary of OpenText
  • Total purchase price of approximately $1.45 billion, inclusive of Carbonite’s cash and debt
  • The total purchase price is approximately 2.9x TTM (Trailing Twelve Months) Carbonite GAAP revenues (as of September 30, 2019), inclusive of annualized full-year reported Webroot GAAP revenues, a significant acquisition by Carbonite which closed in March 2019
  • Current Carbonite Reported Annual Recurring Revenues (ARR) of 90%
  • Accretive and expected to be on the OpenText operating model by end of Fiscal 2021 or sooner
  • Funded with OpenText’s existing cash on hand and debt revolver
  • Estimated OpenText net leverage ratio at the closing of approximately 2.5x, with an expectation to return to less than 2x net leverage during the next 4-6 quarters

About OpenText
OpenText, The Information Company™, a market leader in Enterprise Information Management software and solutions, enabling companies to manage, leverage, secure and gain insight into their enterprise information, on-premises or in the cloud. For more information about OpenText (NASDAQ/TSX: OTEX) visit

Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements regarding OpenText’s acquisition of Carbonite, OpenText’s plans, objectives, expectations and intentions relating to the acquisition, the acquisition’s expected contributions to OpenText’s results and OpenText’s net leverage, the expected size, scope and growth of OpenText’s operations and the markets in which it will operate, expected synergies, as well as the expected benefits of the acquisition, impact on future financial performance including in respect of cloud revenues, cloud margins, adjusted EBITDA, and cash flows, may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText’s assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently, its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors, which could occur, see OpenText’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Copyright ©2019 Open Text. OpenText is a trademark or registered trademark of Open Text. The list of trademarks is not exhaustive of other trademarks. Registered trademarks, product names, company names, brands and service names mentioned herein are the property of Open Text. All rights reserved. For more information, visit:

Note: All dollar amounts in this press release are in US dollars unless otherwise indicated.

About Carbonite
Carbonite provides a robust Data Protection Platform for businesses, including backup, disaster recovery, high availability and workload migration technology. The Carbonite Data Protection Platform supports businesses on a global scale with secure cloud infrastructure. To learn more, visit and follow us on Twitter at @Carbonite.

Carbonite, Inc. serves customers through three brands: Carbonite data protection, Webroot cybersecurity, and MailStore email archiving.

For more information, please contact:
Harry E. Blount
Senior Vice President, Investor Relations
Open Text Corporation

Chris Plunkett
Vice President, Global Communications
Open Text Corporation

Source: Open Text Corporation




General Tags: online data backup, data security, software as a service, SaaS, CEO interviews, compare online backups, top rated online backups, data storage, online backup news, online backup services, online backup reviews, online backup, online file storage, backing up online, online backup companies, cloud computing, online backup providers directory, online file backup

Like us on Facebook

Do you like this post? Subscribe to our RSS feed ===========================


Related posts:

  1. Carbonite Online Backup Completes Acquisition of Zmanda
  2. Carbonite To Be Acquired by OpenText for $23.00 Per Share
  3. OpenText Reports Second Quarter Fiscal Year 2020 Financial Results
  4. OpenText Announces Cloud Agreement with Amazon Web Services
  5. HPE Completes Acquisition of Nimble Storage
  6. Carbonite Closes Acquisition of Mozy, Inc. from Dell Technologies Inc.
  7. Carbonite Closes Acquisition of Webroot
  8. Carbonite Closes Acquisition of EVault Europe from Seagate Technology
  9. InterCloud Systems Completes Acquisition of VaultLogix LLC
  10. Carbonite Closes Acquisition of EVault From Seagate Technology

Tags: ,