Highlights:

  • The acquisition of ShareFile will expand Progress’ portfolio of file management tools.
  • ShareFile serves over 86,000 customers, many of whom use the platform to exchange business data with their clients.

Progress Software Corp. will acquire ShareFile Inc., a leading developer of enterprise file-sharing platforms, in a deal valued at USD 875 million.

The companies recently announced the deal. Progress plans to finance the acquisition using a combination of available cash and funds from an existing revolving credit facility.

Based in Burlington, Massachusetts, Progress offers a diverse array of software tools across various product categories. Its offerings include the MarkLogic Server database, a content management system, and a load balancer. In addition, Progress offers infrastructure management tools aimed at simplifying tasks such as configuring cybersecurity settings for cloud environments.

The company also competes in the file transfer market, offering two tools—WS_FTP and MOVEit—that facilitate the transfer of business records between different technology environments. Last year, MOVEit was the target of a major hacking campaign, which reportedly impacted over 2,000 organizations.

The acquisition of ShareFile will expand Progress’ range of file management tools. ShareFile offers a cloud service that enables employees to share documents with each other and with their company’s clients. Its cybersecurity controls allow users to manage access to files, specifying who can view them, when, and for how long.

SharePoint includes an integrated commenting tool that enables employees to provide feedback on each other’s documents. Managers can use it to assign tasks to team members and send reminders. Additionally, automation features are available to streamline manual tasks, such as transferring data from documents into forms.

ShareFile serves over 86,000 customers, many of whom use the platform to share business data with their clients. For instance, an architecture firm might use ShareFile to share newly created blueprints with a client.

Yogesh Gupta, Chief Executive Officer of Progress, said, “ShareFile fits strategically with Progress’ Digital Experience portfolio to enable organizations to deliver more effective client and team collaboration while simplifying the secure sharing of documents and other content.”

Progress is acquiring SharePoint from Cloud Software Group Holdings Inc., which was established in 2022 through the merger of Tibco Corp. and Citrix Systems Inc. Tibco specializes in tools for transferring data between enterprise applications. Citrix was known for its popular desktop virtualization platform and other products. The merger of these software companies was orchestrated by two private equity firms that had previously invested over USD 20 billion to acquire them.

The company anticipates that ShareFile will increase its annual revenue by over USD 240 million. This acquisition is part of a series of deals the company has made in recent years, focusing on acquiring enterprise software providers that generate substantial recurring revenue and maintain high customer retention rates.

Last quarter, Progress generated USD 175 million in revenue, a 2% decrease compared to the same period the previous year. Despite this, the company comfortably surpassed the upper end of its sales guidance and reported earnings per share of USD 1.09, which also exceeded expectations.

Progress aims to finalize the acquisition of ShareFile by November 30, which marks the end of its current fiscal year.