Canada’s OpenText to acquire Carbonite for $1.42 billion in cash

By Rebecca Melvin

New York, Nov. 11 – OpenText Corp. has entered into a definitive agreement to acquire Carbonite Inc. for about $1.42 billion, including cash and debt, according to an OpenText release on Monday.

The $23.00 per share cash price represented 25% premium over Carbonite’s closing stock price on Friday and a 78% premium over Carbonite’s closing stock price on Sept. 5, which is the last trading day before speculation about a possible deal surfaced.

The transaction is expected to close within 90 days.

Lazard Freres & Co. LLC has acted as sole investment banker to OpenText in connection with the transaction.

Carbonite is a Boston-based provider of cloud and hybrid data protection solutions for small and midsized businesses. It sold $43.75 million of 2.5% convertible senior notes due 2022 in a Rule 144A offering in 2017.

Waterloo, Canada-based OpenText develops and sells enterprise information management software.

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