08:33 AM EDT, 09/09/2024 (MT Newswires) -- Progress Software ( PRGS ) said Monday it has agreed to acquire ShareFile for $875 million in cash.

Chief Executive Yogesh Gupta said the ShareFile acquisition will add to the company's capabilities with software-as-a-service-native, AI-powered document collaboration, secure file sync, and eSignature functions.

Progress said the acquisition is being financed with a combination of cash and the company's existing revolving credit facility and is slated to close before Nov. 30. The company said the acquisition will add more than $240 million to its annual revenue and more than 86,000 customers.

The company also reiterated its Q3 outlook and expects non-GAAP earnings per share and revenue to be within or above the top end of the previously issued guidance. Progress Software ( PRGS ) previously said it expected adjusted EPS of $1.11 to $1.15 on revenue of $174 million to $178 million. Analysts polled by Capital IQ expect earnings of $1.14 per share on revenue of $175.9 million.

Progress Software's ( PRGS ) board will suspend the company's quarterly dividend as of the closing of the acquisition with plans to redirect the capital toward debt repayment purposes.