Carbonite Buys Data Backup Competitor Mozy From Dell for $145.8M
Carbonite has agreed to buy competing online data backup service Mozy from Dell Technologies for $145.8 million, according to an announcement about the company’s 2017 financial results. Carbonite said the deal expands its customer base and the number of market segments to which it can sell.
Boston-based Carbonite has been acquiring or planning to buy companies for the last year, starting with the $65.25 million purchase of Double-Take Software in January 2017. Two months later, Carbonite (NASDAQ: CARB) announced plans to raise $125 million in convertible senior notes to pay down debt and scout acquisitions.
Carbonite is using a $120 million line of credit and cash to buy Mozy, and the deal is expected to close in the first quarter of this year. Round Rock, TX-based Dell acquired Mozy when it purchased Hopkinton, MA-based EMC for $67 billion in 2015. EMC acquired Mozy in 2007 for $76 million from Berkeley Data Systems of American Fork, UT. Founded in 2005, Mozy was early to the data backup game, and had funding from well-known investors including Wasatch Partners and Tim Draper.
Carbonite was founded in 2005 and went public in 2011. Other acquisitions include the purchase of San Francisco-based EVault for $14 million in December 2015, and the buyout of Germany-based MailStore for around $20 million a year earlier, as Xconomy has previously reported.