BURLINGTON, Mass .– (COMMERCIAL THREAD) –Everbridge, Inc. (NASDAQ: EVBG) and xMatters announced today that the two companies have signed a definitive agreement for Everbridge to acquire xMatters for a purchase price of approximately $ 240 million in cash and shares, in pending regulatory review and other customary closing conditions.
The acquisition of xMatters represents another important step in Everbridge’s commitment to better serve its customers and create increased shareholder value.
The combination of technologies and teams from both companies creates a powerful offering of IT alerting and incident management, providing security and IT professionals with seamless orchestration, business processes and automated tools to reduce downtime. Medium Restore (MTTR), correct violations and restore services quickly. . For today’s digital / physical fusion centers, Everbridge and xMatters will together provide an extensive set of features to proactively and quickly discover IT issues, bring stakeholders together, apply remediation code, manage fixes and foster continuous improvement through analysis, which will dramatically increase customer satisfaction.
“In an increasingly virtual world – facing significantly more remote employees, the rapid expansion of devices and systems interconnected via the Internet of Things (IoT), and increasing cases of cyber attacks damaging – IT organizations, large corporations and governments are under pressure like never before. before accelerating their digital transformation while providing solutions for IT resiliency and availability, ”said David Meredith, CEO of Everbridge. “Everbridge provides the leading CEM platform to enable a common enterprise-wide operating environment for organizations to manage all digital and physical incidents on a single pane of glass. The addition of xMatters enhances our CEM for Digital offering within our larger integrated solution suite, increasing ROI for our CEM customers related to use cases for IT service operations, cybersecurity and response to DevOps incidents.
“By combining our innovative technology and team with Everbridge, we hope our customers and partners will collectively benefit from the most innovative capabilities to transform the way they deliver exceptional customer experiences while ensuring resilient digital services,” said Troy McAlpin, CEO of xMatters. “Together, we are positioned to seize emerging market opportunities for the development of advanced digital services for customers and employees. ”
Continuing Meredith: “The Everbridge and xMatters teams create a natural and strong cultural fit, combining our extended and shared industry recognition for technology and innovation, customer success and a focus on creation. of the best places to work. ”
Founded in 2000, xMatters is a privately held company headquartered in San Ramon, California, with a large R&D office in Vancouver, British Columbia, and offices around the world.
Under the terms of the agreement, Everbridge will acquire all of the outstanding shares of xMatters for approximately two-thirds in cash and one-third in shares. The Company expects the transaction to close by the end of the second quarter, subject to Hart-Scott-Rodino regulatory review and other customary closing conditions. Everbridge predicts that the partial year contribution to 2021 revenues will be approximately $ 9-11 million, after taking into account the significant impact of the recognition of purchases and the associated deferred revenue discount. Everbridge expects the acquisition of xMatters to have minimal impact on the Company’s Adjusted EBITDA in 2021 and to become accretive to the Company’s Adjusted EBITDA in 2022. The company will provide an update of its annual forecasts during its next call for results.
William Blair & Company acted as exclusive financial advisor to xMatters in connection with the transaction.
xMatters is a service reliability platform that helps DevOps, Site Reliability Engineers (SRE) and operations teams deliver products at scale quickly by automating workflows and ensuring that the infrastructure and applications are still functioning. The xMatters codeless workflow generator, adaptive approach to incident management, and real-time performance analysis all support one goal: keeping customers happy. Over 2.7 million users trust xMatters daily in successful startups and global giants including athenahealth, BMC Software, Box, Credit Suisse, Danske Bank, Experian, NVIDIA, ViaSat and Vodafone. xMatters is headquartered in San Ramon, California, and has offices around the world. For more information, please visit www.xMatters.com.
Everbridge, Inc. (NASDAQ: EVBG) is a global software publisher providing enterprise software applications that automate and accelerate organizations’ operational response to critical events to keep people safe and businesses running ™. During public safety threats such as active shooter situations, terrorist attacks or extreme weather conditions, as well as critical business events including computer failures, cyber attacks or other incidents such as product recalls or supply chain disruptions, more than 5,600 customers worldwide rely on the business critical event management platform to quickly and reliably aggregate and assess threat data, locate threats at-risk individuals and responders able to help, automate the execution of pre-defined communication processes through secure delivery to over 100 different communication modalities and track progress of execution of response plans. According to data compiled by global investment firm Battery Ventures and employee reviews shared on Glassdoor, Everbridge has become third highest rated public cloud company to work for during COVID-19. Additionally, Everbridge was ranked in the top 50 in the Largest Companies category by Comparably for Better corporate culture and received certification as a Great Place to Work 2020® by the World Authority on Workplace Culture. Everbridge serves 8 of the 10 largest US cities, 9 of the 10 largest US-based investment banks, 47 of the 50 busiest North American airports, 9 of the 10 largest global consulting firms, 8 of the 10 most major global automakers, 9 of the top 10 US-based healthcare providers, and 7 of the top 10 tech companies in the world. Everbridge is based in Boston with additional offices in 20 cities around the world. For more information visit www.everbridge.com
Cautionary Language Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the proposed closing and the expected benefits of acquisition. of xMatters, the opportunity and expected growth trends of our critical business communications and security applications and our overall business, our market opportunity, our sales expectations of our products, our focus on maintaining leadership market and expand the markets in which we compete for clients and the expected impact on financial results. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect”, “anticipate”, “should”, “believe”, “target”, “project”, “objectives”, “estimate”, / “potential”, “predict”, “may” , “Will”, “could”, “intend”, variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond our control. Our actual results could differ materially from those indicated or implied in forward-looking statements due to a number of factors, including, but not limited to: the ability of our products and services to perform as expected and to perform as expected. meet the expectations of our customers; our ability to successfully complete the acquisition of xMatters and integrate the people, technology and business of xMatters, as well as other businesses and assets that we may acquire; the financial impact of the acquisition of xMatters, including the impact on our revenues and adjusted EBITDA in 2021 and future years; our ability to attract new customers and to retain and increase sales to existing customers; our ability to increase sales of our mass notification application, our digital CEM solution and / or our ability to increase sales of our other applications; changes in the market for targeted and contextually relevant critical communications or the associated regulatory environment; our estimates of market opportunities and our forecasts of market growth may prove to be inaccurate; we have not been profitable consistently in the past and may not achieve or maintain profitability in the future; long and unpredictable sales cycles for new customers; the nature of our business exposes us to inherent liability risks; our ability to attract, integrate and retain qualified personnel; our ability to maintain successful relationships with our distribution partners and technology partners; our ability to effectively manage our growth; our ability to respond to competitive pressures; potential liability related to the confidentiality and security of personally identifiable information; our ability to protect our intellectual property rights and other risks detailed in our risk factors discussed in filings with the United States Securities and Exchange Commission (“SEC”), including, but not limited to , our annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 26, 2021. The forward-looking statements included in this press release represent our views as of the date of this press release. . We assume no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be taken as representing our views as of any date subsequent to the date of this press release.
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