Mon Sep 09 14:48:37 UTC 2024: ## Progress Software Acquires ShareFile for $875 Million, Boosting Revenue and Expanding Cloud Footprint

**Boston, MA – September 15, 2023** – Progress Software (NASDAQ: PRGS) announced today the acquisition of ShareFile, a document-centric collaboration platform, for an estimated $875 million. The deal, which is expected to close in fiscal year 2024, represents a significant expansion for Progress, adding approximately 30% to the company’s total revenue.

ShareFile, a subsidiary of Cloud Software Group, boasts a fully recurring revenue model with a net retention rate exceeding 100%. The company currently generates approximately $240 million in annualized revenue and operates with a 20% margin. However, Progress anticipates that after integration, which is expected to be completed within 12 months, ShareFile’s operating margins will exceed 40%.

This acquisition is seen as a strategic move for Progress, further solidifying the company’s position in the cloud software market. DA Davidson, a leading investment firm, has maintained a Buy rating on Progress Software with a price target of $65.00, highlighting their confidence in the company’s direction.

In a separate development, Progress Software reported robust financial results for the second quarter of 2024, exceeding expectations for both revenue and earnings per share. The company recorded $175 million in revenue and $1.09 in earnings per share.

Analysts are optimistic about Progress Software’s future, citing its healthy financial metrics. The company’s market capitalization stands at $2.39 billion, and its gross profit margin has reached an impressive 85.91% over the past 12 months. The company’s revenue has also grown by 9.36% over the same period.

InvestingPro analysis further highlights Progress Software’s strong financial health and growth potential, indicating a positive outlook for investors. The acquisition of ShareFile, coupled with Progress Software’s consistent financial performance, suggests a promising future for the company as it expands its cloud offerings and strengthens its position in the market.

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