Progress Software Acquires ShareFile

(Reuters) – Progress Software (NASDAQ:PRGS) announced on Monday its intention to acquire Cloud Software Group’s ShareFile unit for approximately $875 million, aiming to enhance its enterprise product portfolio with AI-powered solutions.

The deal is projected to finalize within Progress’ fiscal year ending on November 30.

About ShareFile
Founded in 2005 by Jesse Lipson, ShareFile utilizes advanced encryption for secure file sending and storage. It is anticipated to add $240 million to Progress’ annual revenue, supported by a customer base exceeding 86,000.

Company Background
Based in Burlington, Massachusetts, Progress (NYSE:BURL) has a market capitalization of around $2.5 billion. Its product offerings help customers automate business processes, transfer data, and address IT infrastructure monitoring issues.

Financial Strategy
The company also announced a suspension of its quarterly dividend subsequent to the acquisition’s closing, redirecting funds toward debt repayment in order to improve liquidity for future transactions and share buybacks.

Furthermore, Progress expects its revenue and adjusted earnings per share for the fiscal third quarter to meet or surpass the upper limit of its previously set forecast from June 25.