Cloud Backup Data Deposit Box to Be Acquired by HostPapa

Data Deposit Box Inc. signed a binding letter of intent dated February 6, 2020 to be acquired by HostPapa, Inc., a web technology company specializing in web hosting and cloud services for small businesses.

Under the agreement, Data Deposit Box will be amalgamated with a subsidiary of HostPapa and, subject to the satisfaction of certain conditions, Data Deposit Box shareholders will receive a fraction under $0.0125 per share in cash for each of their share.

After consideration and consultation with its financial and legal advisors, Data Deposit Box’s board has unanimously approved the proposal and recommends that its shareholders vote in favour of the transaction at the annual and special meeting of shareholders scheduled for March 13, 2020.

The transaction is expected to close immediately following this meeting, subject to shareholder and regulatory approvals, as well as other customary closing conditions.

“We believe that the transaction brings significant value to our shareholders by way of a 32% premium over the prior 20-day trailing weighted average share price for Data Deposit Box common shares. Data Deposit Box’s cloud backup service fits perfectly into HostPapa’s full range of web products and solutions. We feel our technology and customers have a strong strategic future as part of the HostPapa world,” said Paul Nicholls, chair and director.

“HostPapa brings a strong operational foundation, broad customer base and significant resources to the Data Deposit Box business,” added Siva Cherla, interim CEO, CFO and director. “Our company will benefit greatly by gaining access to HostPapa’s resources and large customer base of small business owners and we know Tim Jewell’s legacy will thrive as a part of the HostPapa family.”

Jamie Opalchuk, founder and CEO, HostPapa, said: “We are excited about the opportunity of offering Data Deposit Box end-point security to our growing base of small business customers and reseller. With the ever growing threats targeting small businesses, it’s essential that as a service provider we offer our customers a suite of backup and security products such as Data Deposit Box to protect their business.“

WD Capital Markets is acting as exclusive financial advisor to HostPapa and Woolford Venture Law is acting as legal counsel.

INFOR Financial Inc. is acting as exclusive financial advisor to Data Deposit Box and Gardiner Roberts LLP is acting legal counsel.

HostPapa is a web hosting and cloud services company headquartered in Burlington, ONT, Canada, with a large base of small business customers around the world. It has been accredited with an A+ rating by the Better Business Bureau and garnered multiple industry awards since its inception in 2007.

Since 2002, over 350,000 users and 200+ partners, in 53 countries, have trusted Data Deposit Box to bring them protection. Its patented technology is backed by a protection guarantee.