Progress Software Corporation is an American public company that produces software for creating and deploying business applications. Founded in Burlington, Massachusetts with offices in 16 countries, the company posted revenues of $531.3 million in 2021 and employs approximately 2100 people. Whereas, ShareFile is a secure content collaboration, file sharing and sync software that supports all the document-centric tasks and workflow needs of small and large businesses. The company also offers cloud-based or on-premises storage, virtual data rooms and client portals. ShareFile is owned by Citrix Systems.
Progress Software said on Monday it would buy Cloud Software Group’s unit ShareFile for about $875 million, as the AI-powered software firm looks to boost its enterprise product portfolio. The transaction is expected to close within Progress’ fiscal year ending Nov. 30. ShareFile, launched in 2005 by Jesse Lipson, uses advanced encryption methods when sending and storing files. The unit is expected to contribute $240 million to Progress’ annual revenue, driven by its customer base of more than 86,000. “Businesses today need to enhance their effectiveness in serving customers, while continuously streamlining their operations to drive efficiency, security and compliance,” said Yogesh Gupta, CEO of Progress. “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. ShareFile customers will benefit from Progress’ strong customer focus, expansive product portfolio and expertise as well as an unparalleled track record of customer success.”
By acquiring ShareFile, Progress Software is enhancing its market position and offering more robust enterprise solutions. The move is likely to be well-received by investors who prioritize long-term stability and growth over short-term returns. Suspending dividends to focus on debt repayment signals a commitment to financial health, potentially leading to better market performance and investor confidence.
