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Progress Software program (NASDAQ:PRGS) is buying Cloud Software program Group’s unit ShareFile in a deal value about $875M.
Progress mentioned the acquisition will assist it add a SaaS-native, AI-powered, document-centric collaboration platform to its enterprise software program portfolio.
“ShareFile matches strategically with Progress’ Digital Expertise portfolio to allow organizations to ship more practical shopper and workforce collaboration whereas simplifying the safe sharing of paperwork and different content material,” mentioned Progress’ CEO Yogesh Gupta.
ShareFile is anticipated so as to add greater than $240M in annual income and over 86,000 clients to Progress, the corporate mentioned in an SEC submitting.
Progress is anticipated to amass ShareFile for $875M which might be paid through a mix of money and Progress’ current revolving credit score facility.
The acquisition is anticipated to shut inside Progress’ fiscal yr ending Nov. 30.
Outlook: Progress expects its income and non-GAAP EPS for its fiscal third quarter to be inside or above the excessive finish of beforehand issued steering offered throughout fiscal second quarter outcomes on June 25. The corporate had mentioned it anticipated income to be between $174M and $178M (consensus $175.93M), and non-GAAP EPS to be within the vary of $1.11 to $1.15 (consensus $1.14).
The corporate is slated to report fiscal third quarter outcomes on Sept. 24.
Dividend: Progress mentioned its board authorized the suspension of its quarterly dividend as of the closing of the ShareFile acquisition. The corporate plans to redirect the capital towards reimbursement of debt to extend liquidity for future mergers and acquisitions, and for share repurchases.
