DALLAS--(BUSINESS WIRE)--Zix Corporation (Zix), (Nasdaq: ZIXI), a leader in email security, has acquired Seattle-based Erado, a provider of archiving, supervision, eDiscovery, and analytics for the financial sector. With the acquisition, Zix strengthens its comprehensive archiving solutions with unified archiving, supervision, security, and messaging solutions for customers that demand bundled services. With more than 18,000 customers across the financial services vertical, Erado’s long-time focus on helping its customers comply with FINRA and SEC regulations will help further strengthen Zix’s offering for customers with compliance requirements.
“Our customers are increasingly requesting that we provide additional email protection services,” Zix Chief Executive Officer David Wagnersaid. “The acquisition of Erado enables us to meet our customers’ needs, strengthen our leadership position, and expand our cloud-based archiving capabilities beyond email to all forms of digital communications. This acquisition, together with our Q1 2017 acquisition of Greenview Data, represents the successful continuation of our previously stated growth strategy.”
The acquisition will allow Zix to deliver gold standard solutions for archiving and compliance. This acquisition expands Zix’s cloud-based email archiving capabilities into more than 50 content channels, including social media, instant message, mobile, web, audio, and video. Zix also believes the acquisition will strengthen its relationship with financial services and legal customers by allowing it to offer a more comprehensive archiving solution that helps customers comply with industry regulations.
“Our solutions, and our team, help our customers meet their onerous compliance requirements while improving their workflow and productivity,” said Craig Brauff, Founder and CEO of Erado. “Delivering such an advanced platform has allowed us to earn the trust of customers and grow our business to more than 18,000 customers. We’re excited to join Zix, combine our solutions and people, and increase our customer base to help even more organizations protect their email and businesses. I believe the combination of our two companies is going to prove to be very powerful in the market.”
In addition to its solutions, Zix’s acquisition of Erado is a good fit based on Erado’s expertise in email security and unified archiving and its reputation for outstanding customer success that aligns with Zix’s promise to deliver a superior customer experience.
“Our customers know us as the premier choice. It’s reflected in our solutions, our people and customer engagement from sales to support,” said Wagner. “We are excited that Erado aligns well with that expectation and look forward to welcoming Craig and his entire team of employees and customers to Zix.”
For the full year 2018, Zix expects subscription revenue from the acquisition to contribute approximately $1.5 million and expects operating cash flow to be neutral, but expects net income to decrease approximately $1.0 million due primarily to an anticipated purchase accounting adjustment to deferred revenues. Zix management will provide additional details on the acquisition and financial outlook on the company’s first quarter 2018 earnings call.
About Zix Corporation
Zix Corporation (Zix) is a leader in email encryption. Zix also offers superior solutions in email data loss prevention and email bring your own device (BYOD) security. Zix is trusted by the nation’s most influential institutions in healthcare, finance and government for easy-to-use secure email solutions that meet data protection and compliance needs. Zix is publicly traded on the Nasdaq Global Market under the symbol ZIXI. For more information, visit zixcorp.com.
