Zix Corporation’s $275 Million Acquisition of AppRiver, LLC


RBC Capital Markets, LLC acted as lead financial advisor to Zix, additional financial advisory services were provided by Cowen and Baker Botts LLP is acting as legal advisor to Zix. Evercore is acting as lead financial advisor and DCS Advisory is acting as co-financial advisor to AppRiver and Kirkland & Ellis LLP is acting as legal advisor to AppRiver. PJT Partners is acting as financial advisor to True Wind Capital, while Simpson Thacher & Bartlett LLP is acting as True Wind Capital’s legal advisor.

Zix Corporation (Zix) (NASDAQ:ZIXI), a leader in email security, has entered into a definitive agreement to acquire AppRiver, a leading provider of cloud-based cybersecurity solutions for $275 million in cash.

AppRiver is a channel-first provider of cloud-based cybersecurity and productivity services, serving more than 60,000 companies worldwide and supported by a 4,500-strong Managed Service Provider (MSP) reseller community. AppRiver launched its flagship spam and virus service in 2002, and has since bolstered its suite of cloud-based security offerings with web protection, email encryption, secure archiving, and email continuity solutions. AppRiver also provides Microsoft Office 365 and Secure Hosted Exchange services, which serve as an effective lead generation tool for the company’s security solutions. For more than 15 years, AppRiver has helped drive industry-leading customer value through its award-winning 24/7 customer service and a single centralized platform to manage all cloud-based security solutions.

Baker Botts Leads $275 Million Acquisition and Related Debt and Equity Financing Transactions for Zix Corporation

15 January 2019

Release

Deal Description: Dallas-based Zix Corporation (NASDAQ:ZIXI), an industry leader in email security, today announced it has reached an agreement to acquire 100% of the outstanding equity securities of AppRiver, LLC from Marlin Equity Partners, a technology-focused private equity firm, for $275 million in cash.

The transaction will be financed with a $175 million secured term loan to be provided by SunTrust and KeyBanc and a $100 million preferred equity investment in Zix being made by True Wind Capital, a San Francisco private equity firm that invests in the technology sector.

Baker Botts advised Zix with a team including Don McDermett (Partner, Dallas); Mollie Duckworth (Partner, Austin); Grant Everett (Partner, Dallas); Luke Weedon (Partner, Dallas); Cynthia Cole (Special Counsel, Palo Alto); Jessica Phillips (Associate, Dallas); Ian Lurie (Associate, Dallas); Jennifer Ybarra (Associate, Dallas); Chad Davis (Associate, Houston); Malory Weir (Associate, Houston); Sara Jones (Paralegal, Dallas); Luke Pedersen (Partner, Washington, D.C.): Tyler Beas (Senior Associate, Dallas); Andrew Wilson (Associate, Washington, D.C.); Eric Winwood (Partner, Dallas); Steve Marcus (Partner, Dallas); Marian Fielding (Senior Associate, Dallas); Snow Rui (Associate, Dallas); Jennifer Trulock (Partner, Dallas); Paul Cuomo (Partner, Washington, D.C.) and Michael Bodosky (Special Counsel, Washington, D.C.).

Involved fees earner: Tyler Beas – Baker Botts; Michael Bodosky – Baker Botts; Cynthia Cole – Baker Botts; Paul Cuomo – Baker Botts; Chad Davis – Baker Botts; Mollie Duckworth – Baker Botts; Grant Everett – Baker Botts; Marian Fielding – Baker Botts; Ian Lurie – Baker Botts; Stephen Marcus – Baker Botts; Don McDermett – Baker Botts; Luke Pedersen – Baker Botts; Jessica Phillips – Baker Botts; Jennifer Trulock – Baker Botts; Luke Weedon – Baker Botts; Malory Weir – Baker Botts; Andrew Wilson – Baker Botts; Eric Winwood – Baker Botts; Snow Xue Rui – Baker Botts; Jennifer Ybarra – Baker Botts;

Law Firms: Baker Botts;

Clients: Zix Corp;

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Author: Ambrogio Visconti