Webroot to be sold for $618.5m
Webroot is about to be sold to data protection firm Carbonite for US$618.5 million after the two companies entered into a definitive agreement this week.
Webroot has been a major player in the cybersecurity space since its launch in 1997. It operates as a cybersecurity provider for both managed security providers and businesses. Its 2018 fiscal year revenue was approximately US$215 million.
That was an attractive portfolio to Carbonite and according to Webroot CEO Mike Potts, the two companies have a common goal of making cybersecurity protection accessible and easy to use.
“We are thrilled to become part of their team,” says Potts. “Together we can deliver tremendous value to our customers and partners.
Carbonite, founded in 2005, has made a number of acquisitions in the last few years, including Evault and Double Take Software.
With the addition of Webroot's portfolio, Carbonite president and CEO Mohamad Ali says Carbonite is one step closer to becoming a leading data protection company.
“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 Webroot team has a passion for building technology to simplify the way customers protect their important data, and we are excited to welcome them,” Ali continues.
The two companies say there are a number of benefits to the acquisition:
• Next-Generation Technology Platform: Combining Carbonite's cloud-based data protection solutions and Webroot's cloud-based machine learning technology will create a next-generation security platform to serve growing customer needs.
• A Comprehensive Solution, Delivering Better Results: A common set of customers will benefit from an easy-to-use, cloud-based, integrated offering, which includes a unique ransomware prevention and recovery solution.
• Consistent Routes to Market and Expansion of Addressable Market: Webroot and Carbonite share a go-to-market focus and a complementary ecosystem of channel partners. Webroot's MSP partners and RMM relationships provide Carbonite with a new channel for increased scale and market expansion.
• Immediately Accretive: Based on Webroot's current operating plan and existing customer contracts, the transaction is expected to be immediately accretive on an earnings and cash flow basis following the close of the transaction.
Carbonite will use a combination of fully committed financing and cash on hand to complete the acquisition. It is expected to close in the first quarter of 2019.