BURLINGTON, Mass. - Progress (NASDAQ:PRGS), a provider of infrastructure software, has announced the successful acquisition of ShareFile, a SaaS-native, AI-powered collaboration platform from Cloud Software Group, Inc. This move, completed for $875 million through cash and credit facilities, aligns with Progress's Total Growth Strategy, focusing on investment, innovation, and driving customer success.
The acquisition is expected to significantly enhance Progress's product offerings, particularly within its Digital Experience portfolio, enabling more efficient collaboration and document sharing while emphasizing security. ShareFile's integration into Progress's suite is projected to add over $240 million in annual revenue and expand the customer base by more than 86,000.
Yogesh Gupta, CEO of Progress, commented on the acquisition, "The addition of ShareFile significantly enhances our product capabilities, benefiting our customers and meaningfully expanding the customer base we serve. We are thrilled to welcome ShareFile customers and employees to the Progress community and look forward to a bright future with ShareFile now part of Progress."
Progress's software solutions are designed to assist organizations in developing, deploying, and managing AI-powered applications responsibly. With over 4 million developers and technologists relying on Progress's expertise, the company aims to provide the agility and ease necessary for transformational success in a rapidly changing digital landscape.
The press release emphasizes that this acquisition marks a strategic expansion of Progress's offerings and its commitment to customer success. However, it also contains forward-looking statements that involve risks and uncertainties, including potential disruptions from the acquisition and the integration of ShareFile's business.
The information in this article is based on a press release statement from Progress Software (NASDAQ:PRGS) Corporation.
In other recent news, Progress Software Corporation has demonstrated a strong financial performance, exceeding Q3 expectations with a 2% year-over-year increase in revenue, reaching $179 million, and a 17% growth in earnings per share to $1.26. The company also announced plans to acquire ShareFile from Cloud Software Group for $875 million, expected to finalize by the end of fiscal 2024, which is projected to contribute $18-20 million to Q4 revenue. DA Davidson expressed increased confidence in Progress Software, raising its price target on the company's stock to $75.00 from $70.00, while maintaining a Buy rating. Analysts from Oppenheimer and Citi also showed confidence in the company's financial health, with Oppenheimer raising the price target to $80 and Citi increasing it to $65.00. Additionally, Progress Software has launched an enhanced Flowmon platform, designed to expedite IP searches by up to ten times, aiding network administrators in quickly identifying network activities linked to specific IP addresses. These are the latest developments in the company's operations.
InvestingPro Insights
Progress Software Corporation's (NASDAQ:PRGS) recent acquisition of ShareFile aligns well with its financial performance and market position. According to InvestingPro data, Progress has a market capitalization of $2.76 billion and has demonstrated strong revenue growth, with a 6.05% increase in the last twelve months as of Q3 2024, reaching $715.42 million.
The company's impressive gross profit margin of 86.28% in the same period underscores its operational efficiency, which could be further enhanced by the integration of ShareFile. This aligns with an InvestingPro Tip highlighting Progress's "impressive gross profit margins."
Another InvestingPro Tip notes that "net income is expected to grow this year," which could be bolstered by the projected $240 million in annual revenue from the ShareFile acquisition. This growth expectation is particularly significant given that Progress is trading near its 52-week high, with a 30.67% price total return over the past six months.
It's worth noting that while Progress is showing strong growth indicators, it's currently trading at a high P/E ratio of 34.02, which may reflect investor optimism about the company's expansion strategy. Investors interested in a deeper analysis can access 11 additional InvestingPro Tips for Progress Software, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.