Portland-based digital archiving firm Smarsh announced Wednesday the acquisition of the archiving and risk management portfolio of Micro Focus.
The deal is priced at $375 million and is expected to be complete in early 2022, according to Micro Focus (NYSE: MFGP) (LSE: MCRO).
“We’re excited to welcome Digital Safe archiving customers and employees to the Smarsh family,” CEO Brian Cramer said. “This acquisition also enables Smarsh to better serve our cross-border financial services customers and to expand our footprint in other heavily regulated industries.”
The deal includes Micro Focus' digital safe product and social media governance, supervisor and e-discovery offerings, and improves Smarsh's position in enterprise information archiving and accelerates its growth strategy, the company said.
Smarsh provides cloud-based capture, archiving and monitoring solutions to companies. It had 830 employees in 2021 and revenue of $150.9 million.
Micro Focus is a Santa Clara, California-based global enterprise software company with services including security, IT management, application delivery management and others, according to the news release. It reported $30 billion revenue in its 2020 annual report.
“This is a strong, strategic move that enables greater global innovation and growth for both Digital Safe and the Smarsh customer base,” Micro Focus senior vice president Scott Richards said in the announcement. “Smarsh has built its growth and reputation through electronic communications archiving and compliance, with continued innovation in artificial intelligence and cloud deployability. This focus will serve Digital Safe customers well, who will be able to leverage Smarsh capture capabilities on day one to deliver new content sources to their existing Digital Safe environments.”
