Carbonite (CARB) to be acquired by OpenText (OTEX) for $23.00/share

Carbonite has agreed to a $1.42 billion purchase by OpenText, an enterprise information management giant, ending weeks of speculation about the anticipated buyout.

 

 

The deal marks a 78% premium on Carbonite's share price on September 5, when it was first rumored the company was preparing to buy the backup and data recovery company. Carbonite said the board "strongly believes" the deal will return "substantial" cash value to shareholders, said Steve Munford, chairman of Carbonite's board.

It ends a busy couple of years for Carbonite as the company has moved away from a traditional data backup business to a more proactive, defensive security company.

In February, Carbonite bought endpoint security company Webroot for $618.5 million in an all-cash deal, as the company pushed to protect against emerging threats like ransomware. Only a year earlier, Carbonite bought Mozy for $145 million, a cloud backup service.

Carbonite said at the time of its acquisition by OpenText, the backup company had losses of $14 million on revenues of $125.6 billion, an increase by 62% year-over-year.

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Carbonite beats by $0.12, reports revs in-line

Reports Q3 (Sep) earnings of $0.61 per share, $0.12 better than the S&P Capital IQ Consensus of $0.49; revenues rose 61.9% year/year to $125.8 mln vs the $125.76 mln S&P Capital IQ Consensus.

Adjusted EBITDA of $40.2 mln, or 30% of non-GAAP revenue, compared to $23.0 mln, or 29% of non-GAAP revenue in 2018.

Carbonite (CARB) : 3-1/2 years since IPO

IPOs this week (8 Aug 2011) : 12 companies scheduled

Update : 8/12/11: Only two of 12 IPOs scheduled this week have priced: SandRidge Permian Trust (PER) and Carbonite(CARB)

10 IPOs are delayed due to market sell-off and volatility:

• Cathay Industrial Biotech Ltd.
• Enduro Royalty Trust
• HomeStreet Inc.
• InvenSense Inc.
• Loyalty Alliance Enterprise Corp.
• Tim we. SGPS S.A.
• WageWorks Inc.
• WhiteGlove Health Inc.
• Midland States Bancorp
• Trustwave

Wed 8/10/11 market stats:

Dow Jones  10,719.94  -519.83  (-4.62%)

S&P 500    1,120.76   -51.77   (-4.42%)

Nasdaq     2,381.05   -101.47  (-4.09%)

Update : 8/11/11:   Carbonite said in a regulatory filing that it now expects shares to be priced at between $10 and $11.  Last month, the company said it hoped to raise as much as $106 million in an IPO by selling shares in the company at $15 to $17 a share

The following were scheduled the week of 8 Aug 2011

1. InvenSense, which makes motion processing chips for companies such as Nintendo, plans to offer 10.5 million shares at $8.50 to $10.50 per share for a $99.75 million offering
2. Carbonite: The online backup company plans to price 6.25 million shares at $15 to $17 each for a $100 million deal.
3. Trustwave Holdings, an online security compliance company, plans to price 6.25 million shares at $15 to $17 per share.
4. Cathay Industrial Biotech, a Shanghai-based industrial biotechnology producer, plans to price 6.9 million ADRs at $12 to $14 per share for a $89.7 million offering.
5. Enduro Royalty Trust plans to price13.2 million shares at $24 to $26 per share for a $330 million offering.
6. HomeStreet, plans to offer 7.8 million shares at $22 to $24 per share.
7. Loyalty Enterprise, a China-based provider of direct marketing and customer loyalty programs for mobile carriers such as China Unicom and China Telecom, plans to offer 5.03 million ADRs at $14 to $16 per share.
8. SandRidge Permian Trust, an oil exploration and production company, plans to offer 31.5 million shares at $19 to $21 per share for a $630 million offering.
9. Timwe, a Lisbon, Portugal-based mobile monetization company, plans to offer 11.25 million shares at $12 to $14 each.
10. Postponed from last week: Midland States Bancorp, an Effingham, IL-based bank holding company, plans to offer 5 million shares at $15 to $17 per share for a $80 million offering.
11. Postponed from last week: WageWorks, San Mateo, Calif.-based provider of employee health and commuter spending benefits programs, plans to offer 5.77 million shares at $8 to $9 per share, after cutting its expected from from $12 to $14 per share, for a $49 million offering at the middle of the range.
12. Postponed from last week: WhiteGlove Health, a low-cost primary and chronic care provider, plans to offer 2.5 million shares at $9 to $13 per share for a $27.5 million offering.

Carbonite started trading on the Nasdaq on 11 August 2011

Web-based computer backup company Carbonite Inc (CARB) began trading on the Nasdaq Thursday, 11 August 2011

• The company had to slash the price from its originally planned range of $15 to $17 to $10 per share
• It raised $62.5 million in its IPO, and ended its first trading day at $12.35, up 23.5 percent from its IPO price of $10.
• The company priced its IPO at the bottom of a lowered price range, and raised about 38 percent less than planned.

Concerns about the U.S. economy and the European debt crisis have helped push the S&P 500 index .SPX down about 13.9 percent from a peak at the start of May. Of the 12 IPOs expected this week, only two have priced.

Bank of America Merrill Lynch and JPMorgan lead the underwriters on Carbonite.

Carbonite files for a $106 million IPO

Carbonite Inc. of Boston, a leading provider of online data backup services, hopes to raise as much as $106 million in an initial public stock offering later this year.

In a document filed with the Securities and Exchange Commission, Carbonite said it plans to sell 6.25 million shares for $15 to $17 per share. Bank of America Corp.’s Merrill Lynch investment unit and JPMorgan Chase & Co. will act as the lead underwriters of the offering.

Carbonite first announced its plan to go public in May. The company, founded in 2005, lets consumers and small businesses back up their computer files by transmitting them over the Internet to a remote data center. Home computer users pay a flat fee of $59 per year for unlimited storage, although Carbonite downloads data from heavy users at a much slower rate, making the service less efficient for large data backups.

David Menlow, president of IPOfinancial.com in Millburn, N.J., an independent research firm for the IPO market, said that there has been a resurgence in the market for IPOs, with 91 initial offerings in the United States so far this year, compared with 77 during the same period last year.

Carbonite says it has 1.1 million subscribers in 100 countries, and foresees booming demand for its backup service. “We believe that a decade from now, nearly every device that creates or stores data, including desktop and laptop computers, tablets, smartphones, and digital cameras, will be backed up over the Internet,’’ the company said in its SEC filing.

But Carbonite faces competition from huge rivals, including EMC Corp. of Hopkinton, which operates the Mozy online backup service. Besides, Carbonite has yet to turn a profit. The company lost $25.8 million last year and $10 million in the first six months of 2011.

The company provides online backups for 1.1 million total customers including consumers and small to medium sized businesses. The company generated revenue of $38.6 million and a net loss of $25.8 million in 2010. In the first half of 2011 the company posted revenue of $27.2 million and a net loss of $10.0 million.

Carbonite charges consumers $59 for one year of service and has a separate plan for businesses.

Competitors include Prosoftnet, CHashPlan and VMWare’s Mozy, Symantec’s Norton, McAfee, SOS Online and others in related sectors such as DropBox. Proposed ticker: Nasdaq: CARB. Current investors with 5% or more of stock include Menlo Ventures, Performance Direct Investments, Crosslink Capital and First Plaza Group Trust.