OpenText, a firm that helps to digitalise processes through AI solutions, has officially confirmed it will be acquiring Carbonite, Inc., a provider of cloud-based subscription data protection.

Mark J. Barrenechea, OpenTextCEO & CTO spoke of the importance of cloud platform and secured end points in today’s IT sector for business to transform.

He added: “This acquisition will further strengthen OpenText as a leader in cloud platforms, complete end-point security and protection, and will open a new route to connect with customers, through Carbonite’s marquee SMB/prosumer channel and products. We are very excited about the opportunities that Carbonite will bring, and I look forward to welcoming our new customers, partners and employees to OpenText.”

An exciting opportunity

OpenText’s EVP & CFO, Madhu Ranganathan suggested that the acquisition gives the digital AI company a “strong start’ in its Total Growth strategy for 2020.

“We are excited by the opportunity to bring forth exceptional leadership in operational execution and integration capabilities to Carbonite. Once integrated, we expect to increase our annual recurring revenues, deliver strong cloud growth, and expand cloud margins and adjusted EBITDA. The resulting growth in cash flows will enable us to maintain a healthy balance sheet, deliver strong earnings, and continue to deliver consistent growth in dividends to shareholders,” Ranganathan adds.

What the purchase will mean

The acquisition is being made for approximately $1.42 billion, this includes any of Carbonites debt. Currently, Carbonite has an Annual Recurring Revenues (ARR) of 90%.

It’s hoped that the procurement will extend OpenText’s ability to offer data loss prevention, digital forensics, end-point detection and response with the addition of Carbonite’s data protection and end-point security solutions. It will also give them the ability to add to their cloud business.

The transaction is expected to close within 90 days.