Sept 9 (Askume) – Progress Software (PRGS.O) said on Monday it will acquire Cloud Software Group’s ShareFile for about $875 million as the artificial intelligence-powered software company seeks to expand its enterprise product portfolio.
The deal is expected to close during Progress’ fiscal year ending Nov. 30.
Founded in 2005 by Jesse Lipson, ShareFile uses advanced encryption methods when sending and storing files. The unit is expected to contribute $240 million to Progress’ annual revenue based on its customer base of more than 86,000.
Burlington, Massachusetts-based Progress has a market capitalization of about $2.5 billion. Customers use its products to automate business processes, move data and troubleshoot network problems by monitoring IT infrastructure.
Progress said it will also suspend its quarterly dividend after the Sharefile acquisition closes as it plans to use the capital to pay down debt to increase liquidity for future transactions and share repurchases.
Progress also said Monday that it expects fiscal third-quarter revenue and adjusted earnings per share to be at or above the high end of its June 25 forecast.
