Zix Corp (NASDAQ:ZIXI) said Tuesday that it has agreed to acquire AppRiver, a provider of cloud-based cybersecurity products, for
Dallas-based Zix, a provider of e-mail security, said in a press release that it expects the combined entity will have annual recurring revenue of $180 million at closing. Zix is aiming for annual recurring revenue of about $200 million to $207 million at the end of its 2019 fiscal year, which would represent a growth rate of 11% to 15% year over year.
AppRiver serves more than 60,000 companies worldwide and is supported by what Zix says is “a 4,500-strong” reseller community. The company provides
“From a cross-selling standpoint, the acquisition provides attractive and abundant synergies at the onset, including the opportunity to drive stronger attach rates by attaching Zix’s solutions to AppRiver’s customer base,” Zix CEO David Wagner said in a statement.
Zix added Tuesday that it has secured a $100 million convertible preferred equity commitment from
Shares of Zix dropped 2.9% to $5.80 in Tuesday's Nasdaq trading.
Drawing on preliminary, unaudited results, Zix said Tuesday that it expects fourth-quarter revenue of
–This story has been updated to give Zix's preliminary revenue outlook–
Contact Dennis Fitzgerald at [email protected]