Zix
Corporation (Zix) (NASDAQ: ZIXI), a leader in email
security, has acquired the assets of Cirius Messaging Inc. and wholly
owned subsidiary, DeliverySlip Inc. related to the DeliverySlip product.
DeliverySlip is a provider of email encryption, e-signatures and secure
file sharing solutions. Total cash consideration for the transaction is
$14 million, payable in various stages between closing and October 2020.
The asset acquisition immediately improves the margin profile of the
business by eliminating the third party royalty payable by AppRiver to
DeliverySlip. In addition, it will add large file transfer capabilities
to Zix’s email security suite, as well as additional customers, cost
savings, and cross-selling opportunities.
“With more than 90% of DeliverySlip’s revenue coming from AppRiver, we
recognized the importance of executing this acquisition to eliminate any
potential disruption to our partners and customers and to drive further
cost savings and cross-selling opportunities,” said David
Wagner, Zix’s Chief Executive Officer. “In addition to the cost
savings of eliminating third-party royalties for the DeliverySlip
solutions, the acquisition will enable our partners and customers to
move forward with one comprehensive suite of email security solutions
that will be integrated over time. It further provides an opportunity to
generate higher attach rates with the cross-sell of large file transfer
and document signing solutions to Zix’s installed base. Not including
potential cross-selling opportunities, we expect the transaction to add
approximately $2 million of adjusted EBITDA in 2020.”
DeliverySlip serves 5 million+ users across 11,000+ organizations
worldwide. With a particular focus on compliance-oriented industries,
DeliverySlip has built a robust data protection platform encompassing
emails, large files, web forms, apps, and electronic signatures and
approvals.
About Zix Corporation
Zix Corporation (Zix) is a leader in email security. Trusted by the
nation’s most influential institutions in healthcare, finance and
government, Zix delivers a superior experience and easy-to-use solutions
for email encryption and data loss prevention, advanced threat
protection, unified information archiving and bring your own device
(BYOD) mobile security. Focusing on the protection of business
communication, Zix enables its customers to better secure data and meet
compliance needs. Zix is publicly traded on the Nasdaq Global Market
under the symbol ZIXI. For more information, visit www.zixcorp.com.
Statements in this release that are not purely historical facts or that
necessarily depend upon future events, including statements about
forecasts of sales, revenue, earnings or earnings per share, potential
benefits of acquisitions and strategic relationships, or other
statements about anticipations, beliefs, expectations, hopes, intentions
or strategies for the future, may be forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Readers are cautioned not to place undue reliance on
forward-looking statements. All forward-looking statements are based
upon information available to Zix on the date this release was issued.
Zix undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Any forward-looking statements involve risks
and uncertainties that could cause actual events or results to differ
materially from the events or results described in the forward-looking
statements, including but not limited to risks or uncertainties related
to the completion and integration of acquisitions, the effects of our
debt and equity financing transactions, year-end adjustments to
previously reported preliminary unaudited financial information, market
acceptance of both existing and new Zix solutions, changing market
dynamics resulting from technological change, innovation and continuing
customer migration to the cloud, changes in the competitive ecosystem,
and how privacy and data security laws may affect demand for Zix data
protection solutions. Zix may not succeed in addressing these and other
risks. Further information regarding factors that could affect Zix
financial and other results can be found in the risk factors section of
Zix’s most recent annual report on Form 10-K and quarterly report on
Form 10-Q, each as filed with the Securities and Exchange Commission, as
those risk factors may be supplemented in subsequent filings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190508005205/en/