Progress to buy ShareFile for $875 million and suspend its quarterly dividend
Progress Software agreed to acquire substantially all assets of ShareFile, a business unit of Cloud Software Group, for about $875 million in cash and revolving credit, with closing expected within fiscal 2024. The company also said its third-quarter revenue and non-GAAP earnings per share are expected to be within or above the high end of prior guidance, and that it will suspend its quarterly dividend at closing to repay debt and fund future M&A and share repurchases.
- Purchase price is approximately $875 million, subject to a $25 million working capital credit, with no financing condition.
- ShareFile is expected to add more than $240 million in annual revenue and more than 86,000 customers.
- Q3 revenue and non-GAAP EPS are expected within or above the high end of guidance issued June 25, 2024; full Q3 results are due September 24, 2024.
- Quarterly dividend will be suspended as of the closing of the acquisition, with capital redirected to debt repayment, M&A and share repurchases.