OpenText has announced that it has entered into a definitive agreement to acquire Zix Corporation, a leader in SaaS-based email encryption, threat protection and compliance cloud solutions for Small and Medium-sized Businesses. The transaction is valued at approximately $860 million.
Zix has been serving over 20,000 customers, spanning from healthcare to financial and manufacturing sectors. The company’s offering is built to reinforce security infrastructure for both partners and end customers, including information archiving, file sharing security, and cloud-to-cloud backup.
OpenText CEO & CTO Mark J. Barrenechea said: “We are pleased to announce our intent to acquire Zix, and I look forward to welcoming Zix customers, partners and employees to OpenText.”
“We intend to integrate Carbonite, Webroot and Zix products to create a powerhouse SMB platform for data protection, threat management, email security and compliance solutions. Acquisitions of cloud growth assets like Zix highlights our commitment to our Total Growth strategy and approach to cash-based returns.”
Through its recent services release, Zix has made it easy for customers to utilise complete visibility into communication security and compliance for platforms like Microsoft Office 365, Google Workspace, SharePoint, OneDrive, Salesforce, Dropbox, and more.
OpenText EVP & CFO, Madhu Ranganathan said: “The acquisition of Carbonite in December 2019 and its successful integration has given us the confidence and readiness to expand even further into the SMB market.”
“Zix brings a meaningful addition to our cloud revenues and will be immediately accretive to our adjusted EBITDA. Once integrated, we expect Zix to contribute to organic growth in cloud and Annual Recurring Revenues, be on the OpenText operating model for profitability and meet our cash-based returns criteria. We remain committed to maintaining a healthy balance sheet, delivering strong earnings, and continuing to invest in our organic growth initiatives.”
