OpenText, the information management solution company enabling powerful market insights, has announced it is acquiring Zix Corporation. The leading email encryption and compliance software for small and medium-sized businesses brings 5,600 managed service partners to OpenText’s dynamic content management solutions.
The deal, which is reportedly worth around $860 million, will combine digital marketing and technology solutions with secure email threat protection.
“We are pleased to announce our intent to acquire Zix, and I look forward to welcoming Zix customers, partners and employees to OpenText,” said OpenText CEO & CTO Mark J. Barrenechea. “We intend to integrate Carbonite, Webroot and Zix products to create a powerhouse SMB platform for data protection, threat management, email security and compliance solutions. Acquisitions of cloud growth assets like Zix highlights our commitment to our Total Growth strategy and approach to cash-based returns.”
Zix Corporation’s high-tech solutions offer email encryption, security, and cloud backup tools, as well as Microsoft 365 integrations. Its tools provide protection from multiple security threat and ransomware types. Among over 21,000 business customers, the company provides around the clock customer service to 1,200 U.S. hospitals and 30 percent of U.S. banks.
OpenText’s leading capabilities help top brands around the world such as L’Oréal, Cree Lighting, SAP, Swarovski, and the San Jose Sharks grow their business operations. With the acquisition of Zix, OpenText is allowing brands such as these to safely develop and distribute email campaigns.
“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 EVP & 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 cloud and Annual Recurring Revenues, be on the OpenText operating model for profitability and meet our cash-based returns criteria. We remain committed to maintaining a healthy balance sheet, delivering strong earnings, and continuing to invest in our organic growth initiatives.”