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AI Firm Progress Software to Acquire Cloud Software Group’s ShareFile in $875M Deal
9 months ago 2 min read
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An infrastructure software firm driven by AI, Progress, said today that it has finalised a deal to purchase ShareFile, a division of Cloud Software Group, Inc.
Thomas Krause, CEO of Cloud Software Group disclosed this in a press release on Monday.
Jesse Lipson founded ShareFile in 2005, and it employs cutting-edge encryption techniques for information storage and transmission.
Progress said that it expects the operation to generate $240 million in sales annually, primarily from its clientele of over 86,000.
ShareFile was formerly a part of the Citrix-owned Cloud Software Group. When Citrix purchased ShareFile in 2011, it took over management of the service.
It’s unclear how much was paid at the time of the transaction. Progress is currently making a payment of $875 million, or roughly 792 million euros.
With the closure of the ShareFile acquisition, Progress announced that it would also cease paying its quarterly dividend. The company intends to reallocate funds to debt reduction to free up cash for future transactions and share repurchases.
“ShareFile has a long track record of success within the secure content collaboration and client interaction space and with this transaction, as part of Progress, will be better positioned to continue that record, long into the future,” said Thomas Krause, CEO of Cloud Software Group.
“For ShareFile customers, we firmly believe they will benefit from Progress’ deep customer commitment, extensive product portfolio, expertise and expansive user community.”
Progress added that it anticipates sales and adjusted earnings per share for the third quarter of its fiscal year to be at or above the upper end of the June 25 prediction.
We earlier reported that AMD will pay $4.9 billion for server vendor ZT Systems as part of its strategy to extend its portfolio of artificial intelligence chips and gear and compete with Nvidia.
Following the closing of the acquisition, the business intends to spin out and sell ZT’s manufacturing assets to concentrate on its systems design expertise.
