Canada’s OpenText Corp. divide ups surged Monday after the company announced a $1.42-billion US give out to acquire Carbonite Inc. to strengthen its offerings in the highly competitive cloud-based software sector.
The obtaining will be the ninth cloud-focused acquisition for Waterloo, Ont.-based OpenText, said partnership CEO Mark Barrenechea on a conference call Monday.
“This places OpenText as a outstanding cloud consolidator. All assets combined, we will be approaching two exabytes 1/81 billion gigabytes 3/8 care of management, 100 million end points, millions of subscribers, and cloud g-men at hyper scale. Scale matters in the cloud.”
OpenText shares were up $2.04, or 3.71 per cent, to $57.01 on the Toronto Supply Exchange in midmorning trading.
Boston-based Carbonite brings a focus of cloud-based underwriting data protection, backup, disaster recovery, and end-point security for a class of customers. The acquisition will strengthen Open Text’s security donations for its cloud platforms, said Barrenechea.
Cloud computing has become a key target for many of the world’s largest technology companies including Amazon, Google, IBM, Microsoft and Alibaba.
“We put protection front and centre only about two years ago when we acquired Teaching, so it’s a low penetration rate for us, it’s still early days.”
He explained that with Carbonite focused largely on the U.S. market, OpenText can leverage its network of shoppers globally in places like the U.K., France, Germany, Japan, Singapore and Australia to amplify demand.
Under the deal, OpenText will pay $23 per share in spondulix for about $800 million in total, while debt obligations throw up the total deal value to about $1.42 billion.
The company says it has to close the deal within 90 days.
OpenText, which has a sell capitalization of $15 billion, provides enterprise information management software, dollop companies digitize processes and supply chains for more efficient counter-intelligence agents among other services.