Trending
Latest

OpenText boosts cloud recurring revenues with $860m Zix buy

The all-cash purchase price is inclusive of Zix's cash and debt, and represents around 3.5x TTM of Zix's GAAP revenues.

By Antony Savvas

Contributing Editor, The Tech Capital

2 Mins

November 12, 2021 | 1:10 PM GMT

OpenText boosts cloud recurring revenues with $860m Zix buy

OpenText CEO and CTO Mark Barrenechea. Source: OpenText

Cloud data services vendor OpenText is splashing out $860 million on acquiring Zix, a specialist in on-demand email security and compliance.

The all-cash purchase price is inclusive of Zix’s cash and debt, and represents around 3.5x TTM (trailing twelve months) of Zix’s GAAP revenues (as of September 30, 2021).

The deal is expected to close in the next three months, said OpenText.

“We look forward to welcoming Zix customers, partners and employees to OpenText,” said OpenText CEO and CTO Mark Barrenechea.

“We intend to integrate our Carbonite, Webroot and Zix products to create a powerhouse SMB (small- to medium-sized business) platform for data protection, threat management, email security and compliance solutions.”

Barrenechea added: “Zix will deepen our technology and go-to-market relationship with Microsoft and will bring around 5,600 MSPs to the business, and also create significant cross-sell opportunities in the OpenText and Zix clouds.”

“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,” said OpenText executive vice president and CFO Madhu Ranganathan.

“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 annual recurring revenues,” Ranganathan said.

Around 90% of Zix’s revenues are recurring, OpenText said.

Daily

Daily Brief

A morning briefing on what you need to know in the day ahead, including exclusive commentary from Tech Capital's writers

Login or Register to comment on this article

Listen to this article
Share this article
European Data Centre Association
Engaging. Definitive. Intelligent
Keywords
More From

Antony Savvas

Contributing Editor, The Tech Capital

Related Articles