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Carbonite To Acquire Webroot For Endpoint Security Tech

Feb. 11, 2019 4:51 PM ETCarbonite, Inc. (CARB)2 Comments


  • Carbonite will acquire Webroot for $618.5 million in an all-cash deal.
  • Webroot provides firms with a suite of endpoint cybersecurity software tools.
  • CARB is acquiring Webroot to expand beyond its core backup business.
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Quick Take

Carbonite (NASDAQ:CARB) announced it has agreed to acquire Webroot for about $618.5 million.

Webroot provides cybersecurity software and services.

With the acquisition, CARB is expanding its focus from increasingly commoditized storage and backup services into cybersecurity offerings.

Target Company

Broomfield, Colorado-based Webroot was founded in 1997 to provide endpoint and networks security as well as security awareness education and threat intelligence services.

Management is headed by President & CEO Mike Potts, who has been with the firm since 2017 and was previously managing partner at Tenacity Partners and President and CEO at Lancope.

Below is an overview video of the Webroot WiFi Security VPN:

Source: Webroot

Webroot's primary offerings include:

  • AntiVirus
  • Internet Security Plus
  • Internet Security Complete
  • WiFi Security
  • Endpoint Protection
  • DNS Protection
  • Security Awareness Training

Company partners or major customers include:

  • Autotask
  • Continuum
  • ConnectWise
  • Kaseya

Investors have invested at least $108.9 million in the company and include Accel, Mayfield Fund, and TCV. Source: Crunchbase

Market & Competition

According to a market research report by Global Market Insights, the global endpoint security market was valued at $4.0 billion in 2016 and is projected to grow at a CAGR of 7% between 2017 and 2024.

The main drivers for this expected growth are the rising awareness and adoption of security measures due to increased cybersecurity threats.

Major competitive vendors that provide endpoint security solutions include:

  • BitDefender
  • Cisco (CSCO)
  • ESET
  • F-Secure (OTCPK:FSOYF) (DTV.MU)
  • IBM (IBM)
  • McAfee
  • Kaspersky Lab
  • Microsoft (MSFT)
  • Carbon Black (CBLK)
  • Palo Alto Networks (PANW)
  • Cylance

Source: Sentieo

Acquisition Terms and Rationale

Carbonite disclosed the acquisition price as $618.5 million in an all-cash transaction that it will fund from available cash on hand and funds from a new credit facility that has been 'fully committed.'

Management said the deal will be 'immediately accretive on an earnings

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This article was written by

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