Cloud-based backup and recovery provider Carbonite has announced its intention to acquire endpoint security company Webroot for approximately $618.5 million in cash.
The transaction, expected to close in Q1 2019, aims to incorporate Webroot’s services into Carbonite’s in order to provide “a comprehensive approach to protection”.
For customers and partners, the combined Webroot and Carbonite will create an integrated solution for their top security needs today and a platform for us to build upon in the future.Mike Potts, President and CEO, Webroot
“The acquisition of Webroot dramatically accelerates our progress towards becoming the leading data protection company,” said Mohamad Ali, Carbonite’s President and CEO. “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.”
In a blog post, Webroot CEO Mike Potts pointed out that SMBs and MSPs have consistently named endpoint security and backup and data recovery services among their top priorities. By combining both companies’ expertise and tech, the joint business hopes to cover both angles, helping SMBs in particular to strengthen not just their defences but their resilience, too.
In addition to building out Carbonite’s current offering, the company highlighted in its presentation to investors (PDF) that Webroot has tens of thousands of Managed Service Provider (MSP) customers, and is integrated with leading Remote Monitoring and Management (RMM) vendors.
By contrast, the majority of Carbonite’s sales at present come through Value Added Resellers (VARs), so the addition of the MSP and RMM channels offers valuable opportunities to expand its business.
It’s also worth noting that “highly-automated and scaled 5th generation machine learning” was cited as one of the features Webroot brought to the table. As we discussed in our coverage of BlackBerry’s acquisition of Cylance, and Fortinet’s acquisition of Zonefox, automation and AI/ML capabilities seem to be a major draw in the field of cybersecurity, both for end-users choosing suppliers and for fellow tech companies looking to grow through acquisition.
The joint business will be led by Carbonite’s Mohamed Ali, with current Webroot CFO John Post taking over general management responsibilities for the Webroot business when the transaction closes.
“Carbonite and Webroot have a common focus on making data protection and cybersecurity solutions accessible and easy to use, as well as a dedication to customer success, and we are thrilled to become part of their team,” said Mike Potts, Webroot CEO. “Together we can deliver tremendous value to our customers and partners.”