November 11, 2019 / 1:14 PM / a month ago

Canada's Open Text to buy cloud security firm Carbonite for $800 million

(Reuters) - Canada’s Open Text Corp (OTEX.TO) will buy cloud security company Carbonite Inc (CARB.O) for nearly $800 million in cash, the companies said on Monday.

Open Text, a business information management software company, will pay $23.00 per share to Carbonite shareholders.

Open Text said the deal represents nearly 78% premium to Carbonite’s closing price on Sept. 5, the last trading day before a media report about the sale process.

Carbonite’s shares were up 24.5 % in premarket trading.

The deal will complement Open Text’s security offerings in data-loss prevention and digital forensics, the company said.

The acquisition, valued at about $1.42 billion including debt, is expected to close within 90 days.

J.P. Morgan Securities LLC was Carbonite’s financial adviser on the deal, and Skadden, Arps, Slate, Meagher & Flom LLP its legal adviser.

Reporting by Akanksha Rana in Bengaluru; Editing by Maju Samuel

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