Carbonite, Inc. (Nasdaq: CARB), a cloud-based data protection provider, has entered into a definitive agreement with cyber security company Webroot under which Carbonite will acquire Webroot for approximately $618.5 million in cash.
Founded in 1997, Webroot is a private company securing endpoints and providing network protection, security awareness training and threat intelligence services. Its assets include a network of Managed Service Providers and Remote Monitoring and Management relationships. Headquartered in Colorado, Webroot operates globally across North America, Europe, and Asia.
Webroot’s MSP partners and RMM relationships would provide Carbonite with a new channel for increased scale and market expansion. Webroot’s fiscal year 2018 revenue was approximately $215.0 million.
Carbonite will fund the transaction with existing cash on hand and funds secured under a new credit facility. The transaction is expected to close in the first quarter of 2019, subject to the receipt of regulatory clearance and other customary closing conditions.
“The acquisition of Webroot dramatically accelerates our progress towards becoming the leading data protection company,” said Mohamad Ali, President and Chief Executive Officer of Carbonite. “With threats like ransomware evolving daily, our customers and partners are increasingly seeking a more comprehensive solution that is both powerful and easy to use. Backup and recovery, combined with endpoint security and threat intelligence, is a differentiated solution that provides one, comprehensive data protection platform.”
The combined business will address a “top vulnerability” of businesses – the endpoint – with a “comprehensive” approach to protection through cloud-based cyber security, paired with cloud-based backup and recovery.
“Carbonite and Webroot have a common focus on making data protection and cyber security solutions accessible and easy to use, as well as a dedication to customer success, and we are thrilled to become part of their team,” said Mike Potts, CEO of Webroot. “Together we can deliver tremendous value to our customers and partners.”