The acquisition seeks to diversify Zix’s product portfolio in a bid to provide security and email services to SMBs.
Email security provider Zix are all set to acquire cloud security company AppRiver in a USD 275 million all cash deal. As per the terms of the deal, Zix will gain access to AppRiver’s growing customer base and provide cloud and email protection products together, to SMBs globally.
According to Zix, enterprises that choose their service to protect business emails also need security solutions for their cloud platforms and hosting environments. They claim that the heavy adoption of the cloud has made it necessary to protect business sensitive data that can affect daily activities of enterprises big and small.
By acquiring AppRiver, Zix believe that they will be diversifying their product portfolio by adding a cloud-security service to their offerings. They claim that enterprises will be able to benefit from Zix’s end-to-end approach when it comes to providing enterprise security solutions.
AppRiver say that this acquisition will add threat protection, mitigation and eradication prowess to Zix’s current capabilities. They believe that this acquisition will give Zix access to those markets where it was present but not as prominent earlier.
David Wagner, Zix’s Chief Executive Officer claims that from a cross selling perspective, Zix can leverage AppRiver’s wide global network. He also estimates that this acquisition has paved the way for yet another profitable year for Zix and AppRiver as well.
With this move, one can’t help but think about Palo Alto Network’s acquisition of RedLock to provide multi-cloud security to enterprises in the U.S. market. It will be exciting to see how Zix and AppRiver take this deal further.