Waterloo-based OpenText, an information management software company, officially confirmed its acquisition of Carbonite, a cloud-based data protection and security software solution provider.

The total purchase price is US$1.42 billion. Currently, outstanding Carbonite shares are set to be purchased for US$23.00 per share in cash, although this offer has not yet commenced. The acquisition cost also includes all of Carbonite’s outstanding debt.

Carbonite marks another key acquisition made by OpenText to enhance its security services. Through the acquisition, OpenText is looking to strengthen its security offerings in data loss prevention, digital forensics, endpoint security portfolio.

OpenText’s other significant acquisitions include Guidance, the makers of the enCase forensics software.

“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,” said Mark J. Barrenechea, OpenText chief executive officer. “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.”

In its press release, OpenText wrote that it expects a significant expansion of cloud revenues, cloud margins, and cash flows in fiscal 2021.

The transaction is expected to close within 90 days.

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