Progress, a provider of AI-powered infrastructure software, has made an announcement regarding its acquisition of ShareFile, a business subdivision of Cloud Software Group, for $875 million. ShareFile specializes in AI-powered document collaboration that is SaaS-native and applicable to a variety of industries, including construction, healthcare, and financial services. The acquisition will enhance Progress' portfolio by facilitating secure file sharing, collaboration, and client workflows. Progress anticipates that this acquisition will result in the addition of over 86,000 customers and the generation of more than $240 million in annual revenue, thereby advancing its Total Growth Strategy of acquiring complementary businesses with high customer retention and recurring revenue.
The transaction is anticipated to be finalized within Progress' fiscal year, provided that regulatory approval is obtained. Progress will suspend its quarterly dividend upon close to prioritize debt repayment and future mergers and acquisitions. Yogesh Gupta, the CEO of Progress, emphasized the acquisition as a critical factor in improving operational efficiency and consumer collaboration. The incorporation of ShareFile will enhance Progress' current capabilities, which cater to more than four million developers worldwide. ShareFile customers will capitalize on Progress' strong customer support, extensive product line, and expertise. The transaction is expected to result in substantial development and improved consumer experiences for both companies.
