Carbonite (CARB) to Acquire EVault from Seagate (STX)

Carbonite, Inc. (NASDAQ: CARB) announced it has entered into an agreement to acquire the business continuity and disaster recovery business of EVault, a division of Seagate Technology (Nasdaq: STX).

EVault is a leading provider of business continuity and disaster recovery solutions designed for SMBs and small enterprises. Together with Carbonite’s highly successful line of data protection and recovery products for small businesses and individuals, the company will now provide a full suite of solutions that are cost-effective, easy to use and meet the needs of all SMBs, a market estimated by Carbonite at $13 billion dollars in the U.S. and over $40 billion worldwide.

“With this acquisition, Carbonite is taking a big step forward in meeting the data protection and business continuity needs of the entire SMB market from home offices to medium-sized businesses,” said Mohamad Ali, President and CEO of Carbonite. “EVault’s proven technology, which includes a line of highly scalable appliances and advanced disaster recovery as a service (DRaaS) capabilities, enables us to round out our portfolio and immediately provide the features and functionality larger businesses require to support their complex environments.”

As part of the acquisition, EVault, recently named a “Major Player” in the DRaaS market by industry analyst firm IDC, adds the following products to the Carbonite solution suite:

• EVault Cloud Backup and Recovery – software-only solution for server backup
• EVault Backup and Recovery Appliance – all the benefits of EVault Cloud Backup and Recovery with an appliance form factor for local backup and restore
• EVault Cloud Resiliency Services – DRaaS services providing failover in the cloud

“We are excited to combine two powerful, best-of-breed product portfolios to meet the needs of all SMBs,” said Anthony Folger, Chief Financial Officer at Carbonite. “We expect the acquisition will be accretive to non-GAAP net income per share in year one and will result in more than 50% of Carbonite’s total bookings coming from the sale of SMB products in 2016.” Added Folger, “Our strong cash position and ability to efficiently deploy capital was extremely advantageous in our ability to make this opportunistic and strategic acquisition.”

Transaction Details

Carbonite has entered into an agreement to acquire substantially all of the assets of EVault’s operations for a purchase price of $14 million in cash. The company expects to complete the acquisition of the North American assets of EVault in January of 2016, subject to customary closing conditions, and expects to complete the acquisition of the European Union assets of EVault in the first quarter of 2016, subject to applicable laws, compliance requirements and customary closing conditions.

Foley & Lardner LLP and Eversheds LLP acted as legal advisors, William Blair & Company, LLC, acted as lead financial advisor to Carbonite. Wilson Sonsini Goodrich & Rosati and Baker & Mackenzie LLP acted as legal advisors for Seagate Technology.

Conference Call and Webcast Information

In conjunction with this announcement, Carbonite will host a conference call on Wednesday, December, 16, 2015 at 8:30 a.m. EST to discuss the expected acquisition. This call will be webcast live and can be found in the investor relations section of the Company's website at http://investor.carbonite.com. The conference call can also be accessed by dialing (877) 303-1393 in the United States or (315) 625-3228 internationally with the passcode 9793593.

Following the completion of the call, a recorded replay will be available on the company’s website, http://investor.carbonite.com, under “Events & Presentations” through December 16, 2016.

You May Also Be Interested In

• Citadel unwinds 80% of Aschenbrenner’s portfolio risk - report
• Elroy Air wins $46M U.S. Army contract for cargo drone system
• Breeze Acquisition Corp. II gets Nasdaq notice for late 10-Q filings