Zix Corporation†(Zix) (NASDAQ: ZIXI), a leader in email security, has acquired the assets of Cirius Messaging Inc. and wholly owned subsidiary, DeliverySlip Inc. related to the DeliverySlip product. DeliverySlip is a provider of email encryption, e-signatures and secure file sharing solutions. Total cash consideration for the transaction is $14 million, payable in various stages between closing and October 2020. The asset acquisition immediately improves the margin profile of the business by eliminating the third party royalty payable by AppRiver to DeliverySlip. In addition, it will add large file transfer capabilities to Zix’s email security suite, as well as additional customers, cost savings, and cross-selling opportunities.
“With more than 90% of DeliverySlip’s revenue coming from AppRiver, we recognized the importance of executing this acquisition to eliminate any potential disruption to our partners and customers and to drive further cost savings and cross-selling opportunities,” said†David Wagner, Zix’s Chief Executive Officer. “In addition to the cost savings of eliminating third-party royalties for the DeliverySlip solutions, the acquisition will enable our partners and customers to move forward with one comprehensive suite of email security solutions that will be integrated over time. It further provides an opportunity to generate higher attach rates with the cross-sell of large file transfer and document signing solutions to Zix’s installed base. Not including potential cross-selling opportunities, we expect the transaction to add approximately $2 million of adjusted EBITDA in 2020.”
DeliverySlip serves 5 million+ users across 11,000+ organizations worldwide. With a particular focus on compliance-oriented industries, DeliverySlip has built a robust data protection platform encompassing emails, large files, web forms, apps, and electronic signatures and approvals.
