OpenText to buy cloud focused Carbonite for US$1.42 billion

WATERLOO, Ont.—OpenText Corp. says it has reached an agreement to buy cloud-computing company Carbonite Inc in a US$1.42 billion deal including debt.

The Waterloo-based software and service company says the deal will strengthen security on its cloud platforms and open new routes to connect with customers.

It says Carbonite provides cloud-based subscription data protection, backup, disaster recovery, and end-point security to small and medium-sized businesses and customers.

The deal has OpenText paying US$23 per share in cash, to be funded with cash on hand and a revolving credit.

The company says it expects to close the deal within 90 days.

OpenText provides enterprise information management software, helping companies digitize processes and supply chains for more efficient operations.