Online backup and recovery company Carbonite has confirmed the acquisition of Webroot, a company which offers real-time security solutions to PCs and Macs. The deal between the two has been struck for $618.5 million in cash. To fund the deal, Carbonite apart from using cash on hand is taking a $550 million loan from Barclays, Citizens Bank and RBC Capital Markets.
Carbonite plans to utilize the endpoint solution of Webroot to give their customers a complete solution with their own cloud-based backup offerings. It also gets an additional customer base of Webroot whom it can target for their cloud-based backup and recovery offerings.
Mohamad Ali, the CEO of Carbonite in a statement said, "The acquisition of Webroot dramatically accelerates our progress towards becoming the 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." Webroot was started in 1997 by Steven Thomas and the company had raised over $100 million in capital from Accel, Mayfield Fund and TCV.
Carbonite was founded by David Friend and Jeff Flowers in 2005 with an aim to offer the backup and recovery solutions to individuals and enterprises. The company has secured close to $200 million in investment from top investors like Institutional Venture Partners (IVP), 3i Group, CVP, Translink Capital, Crosslink Capital, Menlo Ventures, Four Rivers Group, and Performance Equity Management.
Prior to this acquisition, the last acquisition of Carbonite was Mozy which it bought for $145 million from Dell.
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