This article originally appeared in Boston Business Journal, a sister site of BostInno.
Boston-based Carbonite Inc. (Nasdaq: CARB) has agreed to buy Mozy Inc., a subsidiary of Dell Technologies Inc., for $145.8 million in cash.
Mozy makes data protection software similar to Carbonite's own products, and the deal will help Carbonite capture more of its market, which ranges from individuals backing up their home computers to businesses migrating to the cloud.
“Carbonite’s competitive advantage is our flexible data protection platform, which serves every scenario," Carbonite CEO Mohamad Ali said in a statement. "This deal provides Mozy customers scalable options for the future and gives Carbonite a broader base to which we offer our solutions.”
The acquisition is financed by a combination of Carbonite's cash on hand and a new $120 million revolving credit facility.
Mozy, which is based in Utah, was acquired by EMC Corp. in 2007. Terms of the deal weren't disclosed at the time, but reports indicated the price tag was around $76 million. Mozy became part of Dell Technologies through EMC's 2016 merger with Dell Inc.
Carbonite expects the deal to close during the first quarter of 2018. A spokesperson for the company declined to share details about what will happen to Mozy's employees because the deal still has to undergo a federal anti-trust review.
Carbonite on Tuesday also reported 2017 revenue of $239.5 million, a 16 percent increase from the previous year. The company's stock price was up about 10 percent from a year ago as of the close of markets Tuesday, giving it a market valuation of roughly $600 million.
