(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