Carbonite on Tuesday announced it's entered into a definitive agreement to acquire Mozy from a subsidiary of Dell for $145.8 million in cash, alongside mixed financial results for the quarter and full year.
Carbonite's Mozy transaction is expected to close in the first quarter of 2018, the company said.
Mozy by Dell is a cloud-based secure backup solution for enterprises to automatically sync data and recover it easier when lost. Mozy fell under Dell's umbrella after its EMC merger in 2016.
Carbonite believes the deal will expand its customer base and better position itself to cover every segment of the market.
"We are thrilled to announce the acquisition of Mozy," Mohamad Ali, President and CEO of Carbonite, said in a statement. "Carbonite's competitive advantage is our flexible data protection platform, which serves every scenario, from backing up individual laptops to maintaining uptime for hundreds of business servers. This deal provides Mozy customers scalable options for the future and gives Carbonite a broader base to which we offer our solutions."
Carbonite said it will fund its Mozy acquisition with cash and $120.0 million revolving credit line.
For the fourth quarter, the Boston-based company delivered a net loss of $1.6 million, or 6 cents per share.
Non-GAAP earnings were 31 cents per share on revenue of $61.7 million, up 15 percent year-over-year. Wall Street was looking for earnings of just 29 cents per share with $64.18 million in revenue.
For the year, Carbonite delivered a net income of 79 cents a share on revenue of $239.5 million, up 16 percent from a year ago. Analysts expected EPS of 78 cents on revenue of $247.29 million.
Shares of Carbonite spiked briefly in after market trading.