Dropbox (DBX) shares rose after the file-management major said it would purchase secure-document-sharing provider Docsend for $165 million cash.
At last check Dropbox shares were trading almost 4% higher at $24.70.
Both San Francisco-based companies, Dropbox and Docsend also have complementary functions. Dropbox has a cloud-storage focus and Docsend serves as a method of securely sharing documents between users.
Docsend will join the family of Dropbox productivity brands, which also includes HelloSign, a service that enables users to draft and confirm documents with electronic signatures.
“We’ll be able to offer a full suite of secure, self-serve products to help [users] manage critical document workflows from start to finish,” Dropbox Co-Founder and Chief Executive Drew Houston said in a statement.
The deal comes after remote work has seen a quick and sudden rise due to the pandemic lockdowns and social-distance requirements.
But Dropbox and Docsend are not strangers. The companies have already been collaborating since 2019 as part of Dropbox’s extension partner program.
Docsend brings with it a user base of 17,000 subscribers. The acquisition will bring its services to Dropbox’s more than 700 million users.
Dropbox offers seveal tiers of storage service. Its basic plan offers 2GB of storage, while its plus, family, professional, standard and advanced plans add storage and functions for between $9.99 and $20 per month. Pricing may also vary with additional users to a plan.
For the fourth quarter, Dropbox posted a loss of 84 cents a share, compared with 2 cents in the year-earlier quarter. The latest adjusted net income was 28 cents a share. Revenue reached $504.1 million from $446 million a year earlier.
The purchase of Docsend is not expected to affect Dropbox’s 2021 earnings. Dropbox expects to close the deal this month.