Progress Software Corp. has inked a $875 million deal to acquire ShareFile Inc., the developer of a popular file sharing platform for enterprises. 

The companies announced the deal today. Progress plans to finance the transaction with a combination of cash on hand and funds drawn from an existing revolving credit facility.

Burlington, Massachusetts-based Progress sells a range of software tools spanning several product categories. It offers a database called MarkLogic Server, a content management system and a load balancer. Progress’ product portfolio also includes infrastructure management tools that ease tasks such as configuring cloud environments’ cybersecurity settings.

The file transfer market is another segment where the company competes. It offers two tools, WS_FTP and MOVEit, that ease the task of moving business records between technology environments. The latter product was the focus of a high-profile hacking campaign last year that reportedly affected more than 2,000 organizations.

The ShareFile acquisition will add another product to Progress’ lineup of file management tools. The former company provides a cloud service that workers use to share documents with one another and with their company’s customers. Cybersecurity controls make it possible to regulate who may access what file, when and when for how long.

SharePoint provides an embedded commenting tool that allows workers to exchange feedback about one another’s documents. Managers, in turn, can assign tasks to team members and send reminders. There are also automation features that speed up manual chores such as entering data from a document into forms.

ShareFile has more than 86,000 customers. Many of those companies rely on the platform to share business data with customers. An architecture firm, for example, can use ShareFile to share newly created blueprints with a client.

“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,” said Progress Chief Executive Officer Yogesh Gupta.

Progress is acquiring SharePoint from Cloud Software Group Holdings Inc., which formed in 2022 through the merger of Tibco Corp. and Citrix Systems Inc. The former company sold tools for moving data between enterprise applications, while the latter developed a popular desktop virtualization platform and several other products. The software makers’ merger was coordinated by two private equity firms that had earlier spent more than $20 billion to acquire them.

The company expects ShareFile to boost its annual revenue by more than $240 million. The acquisition is the latest in a series that the company has closed over the past few years. It buys enterprise software providers that generate a significant portion of their sales in the form of recurring revenue and have high customer retention rates.

Progress generated $175 million in revenue last quarter, 2% less than the same time a year earlier. Nevertheless, it managed to top the high end of its sales guidance by a comfortable margin. Its earnings per share of $1.09 likewise exceeded expectations. 

Progress plans to close the acquisition of ShareFile by November 30, the day its current fiscal year ends.

Image: ShareFile