Mon Sep 09 15:16:07 UTC 2024: ## Progress Acquires ShareFile for $875 Million, Bolstering its Enterprise Software Portfolio

**Burlington, MA -** Automation and IT monitoring company Progress announced today its plans to acquire file management platform ShareFile for $875 million in cash and credit. The deal, expected to close by November 30, aims to strengthen Progress’s portfolio with tools that enhance business document sharing and collaboration.

Progress CEO Yogesh Gupta emphasized the strategic value of the acquisition, stating that ShareFile’s capabilities will “help businesses more efficiently share — and collaborate on — documents.” He highlighted the benefits for ShareFile customers, including access to Progress’s extensive product portfolio, expertise, and strong customer focus.

Founded in 2005 by self-taught programmer Jesse Lipson, ShareFile has grown to serve over 40 million users, offering a range of file-sharing tools and services, including branded portals, e-signing, and regulation-compliant clouds.

Cloud Software Group, the holding company that previously owned ShareFile, anticipates a significant boost to Progress’s revenue, adding as much as $240 million in annual recurring revenue and 86,000 clients to its base.

The enterprise file-sharing market is highly lucrative, valued at $9.5 billion in 2023. While ShareFile isn’t currently among the top players, the acquisition underscores the potential for significant revenue growth within this sector.

Progress plans to suspend its quarterly dividend after the acquisition to focus on debt repayment and future M&A activities. This move signals the company’s confidence in the strategic value of ShareFile and its commitment to further expanding its portfolio.

The acquisition comes as Progress continues to recover from a massive data breach last year. Despite a 2.3% decline in revenue for Q2, the company anticipates revenue and earnings for Q3 to be within or above its forecast. This acquisition, however, marks Progress’s first significant move to bolster its offerings in the growing enterprise file-sharing market.

Read More