OpenText Corp. OTEX, +1.09% announced Monday an agreement to buy email encryption company Zix Corp. zix in a deal valued at $860 million, including debt. Zixi’s stock was halted for news, until 9 a.m. Eastern. Under terms of the deal, Open Text will pay $8.50 in cash for each Zix share outstanding, which represents a 2.7% discount to Friday’s closing price of $8.74, and implies a market capitalization for Zix of $483.8 million. The deal is expected to close within 90 days of Monday’s announcement. “We intend to integrate Carbonite, Webroot and Zix products to create a powerhouse SMB platform for data protection, threat management, email security and compliance solutions. Acquisitions of cloud growth assets like Zix highlights our commitment to our Total Growth strategy and approach to cash-based returns,” said OpenText Chief Executive Mark Barrenechea. Zix’s stock has soared 28.0% over the past three months, while OpenText share have slipped 1.4% and the S&P 500 SPX, +0.32% has gained 5.9%.
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