The growth of cloud-based applications has boosted innovation but has also created new security challenges.
To stay safe on the cloud, protection is needed, and cyber security firm Carbonite has made its name by providing a cloud-based backup service that can restore data after network disruption.
As the cyber security market continues to grow, Boston-based Carbonite is expanding, and has now closed the $618.5 (£473.3) million purchase of Endpoint threat intelligence provider Webroot, which has developed a range of security tools to help protect small and medium enterprises.
These tools will now join Carbonite’s range of security solutions, helping the company to evolve from a consumer-oriented provider of data protection services, to a comprehensive provider of both data protection and security solutions for small-to-medium enterprises, which represent the majority of Webroot’s customer base.
“Webroot and Carbonite share a common vision to empower small and mid-sized businesses with next generation solutions purpose-built for their unique needs,” said John Post, Chief Financial Officer at Webroot. “I’m confident we will build on the momentum of Carbonite and Webroot’s cloud-based approach to protecting endpoint data as we aim to deliver strong results for customers and partners.”
Since it was founded in 2005, Carbonite has made a total of eight acquisitions, expanding its capabilities by taking on new products and expertise. As its biggest deal ever, the acquisition of Webroot represents a bold move, but one that is designed to capitalise on a growing market.
As software development accelerates, new vulnerabilities are continually discovered – creating an unceasing demand for cyber-security solutions, and a hot market for mergers and acquisitions.
Valuations of companies in this sector continue to rise, and over the past year several significant deals have taken place – from networking giant Cisco’s $2.35 billion purchase of zero-trust security provider Duo, to Symantec’s $200 million purchase of Cloud-focused security firm Luminate.