The transaction is OpenText’s third billion-dollar acquisition since 2016
OpenText announced Monday it has entered a deal to acquire Zix Corporation, a major cloud-services provider for small businesses, for an enterprise value of $1.07 billion.
OpenText’s financial subsidiary will begin a tender offer for the outstanding shares of Zix at the stock price of $8.50 per share. The closing of the transaction is subject to regulatory approvals, other conditions and the tender of two-thirds of Zix’s common shares. The purchase is expected to close within 90 days. Zix’s largest shareholder, as well as Zix’s executive officers and directors have agreed to convert its series A preferred shares into common shares and tender into the tender offer.
OpenText is an information management company, which helps companies securely capture, govern and exchange information, and is headquartered in Waterloo, Ont.
The transaction comes two years after OpenText acquired the major data protection provider, Carbonite, for $1.45 billion. And in 2017, the company purchased Dell EMC’s content division for $1.62 billion, to boost its content services.
“We are pleased to announce this transaction with OpenText,” said Robert Hausmann, Zix chairman. “Following a strategic review, conducted by our board of the directors, triggered in part by unsolicited approaches from multiple parties, Zix and its financial advisor conducted a broad outreach to more than 70 strategic and financial parties over a number of months. Today’s announcement is the culmination of that process. This transaction, which has been unanimously approved by the Zix Board, delivers to Zix’s stockholders liquidity, value certainty and a high likelihood and speed to closing with a proven acquiror.”
Dave Wagner, Zix’s Chief Executive Officer, added that Zix has increased its product portfolio and consumer base through acquisition initiatives over several years and was thrilled to add Zix’s secure cloud platform to the Carbonite, Webroot products in OpenText’s SMB Platform. OpenText will help Zix achieve its next level of growth, as this deal will greatly improve resource capabilities, and provide important benefits to the company’s partners and customers.
