Carbonite Acquires Double-Take Software for $65 Million

Carbonite, Inc. has acquired Double-Take Software, an affiliate of Vision Solutions, Inc. and Clearlake Capital Group, L.P.

The acquisition enhances Carbonite’s existing suite of data protection solutions for SMBs with HA technology that minimizes downtime.

Carbonite also announced preliminary fourth quarter and full year 2016 financial results.

The aggregate purchase price for Double-Take Software was $65.25 million, comprised of $59.75 million in cash and $5.5 million in Carbonite common stock, representing approximately 332,000 shares. Of the $59.75 million in cash, $20.55 million was funded with cash on hand and $39.2 million was funded through a revolving credit facility at Silicon Valley Bank.

The transaction closed on January 31, 2017.

Barclays acted as financial advisor to the company.

Double-Take HA solutions have been trusted by businesses for more than two decades to protect them from the costs and consequences of unplanned downtime and data loss. Available for both Windows and Linux, these solutions help keep businesses running in the face of increasing cyber-threats, disasters, and technology failures.

Together with Carbonite’s portfolio of cloud and hybrid backup and DR solutions, Carbonite will now address the data protection needs and uptime requirements of all SMBs.

“Persistent and emerging IT threats, such as hardware or software failures, cyber attacks and malware, continue to expose businesses to data loss and downtime,” said Phil Goodwin, research director, IDC. “We estimate that businesses can lose hundreds of thousands of dollars due to unplanned downtime. IT organizations need the ability to protect and recover data instantly, rather than in hours or days, to avoid irreparable business damages.”

“Carbonite data protection solutions are designed to meet the real needs of businesses today, from the mid-sized company with a global footprint to the single small office,” said Mohamad Ali, president and CEO, Carbonite. “Our current solutions support scenarios ranging from simple file restore to failover, and with the addition of Double-Take HA, we can now extend those scenarios to active recovery in near real-time, minimizing any downtime and the associated loss of productivity and revenue.“

As part of the acquisition, Double-Take Software adds the following products
to the Carbonite solution suite:
    •    Double-Take HA – Replication of applications and data, in real time, from physical, virtual and cloud servers
    •    Double-Take DR – Failover between a primary and secondary or cloud location in an emergency
    •    Double-Take Move – Scheduled move of systems from one location to another
    •    Double-Take Cloud Migration – Planned migration from MS Windows to Amazon, Azure or Google clouds
    •    Double-Take SQL Migration – Migrating and upgrading Microsoft (SQL Server)

“Carbonite is a recognized leader and platform company in data protection, and the addition of Double-Take’s HA solutions to the Carbonite portfolio makes clear strategic sense and firmly positions Carbonite to capitalize on the growing data protection opportunity,” said Behdad Eghbali, managing partner, Clearlake Capital. “We’re impressed with Carbonite’s team as well as their vision and we are confident that the acquisition of Double-Take Software will create significant value for shareholders.“

Preliminary Fourth Quarter and FY 2016 Financial Results
“The fourth quarter was a great end to a strong year as we consistently delivered financial and operating results that were ahead of expectations in 2016. I am very pleased with our performance this year, which creates the foundation for further top line growth, profitability and free cash flow generation in 2017,” said Anthony Folger, CFO, Carbonite.

To read the SEC filing