Carbonite Officially Rejects J2 Global’s Takeover Offer
The cliffhanger is over for those of you following the Carbonite wedding drama we posted about last week: Carbonite won’t let J2 Global put a $415 million dollar ring on it. The announcement came last Friday in the form of a regulatory filing by Carbonite.
J2 Global, a digital services company, had offered to buy the popular online backup service two years ago at $15/share in cash which comes out to around $415 million. Since the offer was still outstanding without an answer, J2 even went so far as to garner support from another Carbonite shareholder, Engine Capital, which wrote a letter urging Carbonite to accept the offer.
Alas, J2’s affections went unrequited – and somewhat harshly so. Carbonite’s board of directors said that the offer from J2 Global “substantially undervalues the company and is not in the best interests of Carbonite stockholders.” Further, the board described the offer as “unsolicited and opportunistic.” Ouch! That certainly sounds final.
But Carbonite hasn’t sworn off marriage altogether. It’s still on the market. Its CEO, Mohamad Ali indicated that a sale could still happen at some future date. In fact, the SEC filing mentions a “Party X” as a possible other bidder. Carbonite has hired Deutsche Bank to help with any forthcoming offers which could suggest that a bidding war might be heating up.
I would hate to see J2 or Carbonite end up in an ill-advised marriage on the rebound. On the other hand, I’m going to go make some more popcorn just in case.
If you don’t use an online backup service yet, click here to read our in-depth review of Carbonite and other backup services.