About the Acquisition Deal
Founded in 2007, Dropbox is a workspace business that provides secure file sharing, collaboration, and storage solutions for companies. The company is worth an estimated $10.08 billion.
DocSend, founded in 2013, is a document sharing and tracking business that helps professionals build relationships and easily deal with business transactions. To date, the document sharing company has raised $15.3 million, and the business currently has 17,000 customers.
Today, Dropbox announced it would be acquiring DocSend for $165 million. Drew Houston, co-founder and CEO of the workspace company said of the acquisition, “We’re announcing that we’re acquiring DocSend to help us deliver an even broader set of tools for remote work, and DocSend helps customers securely manage and share their business critical documents, backed by powerful engagement analytics.”
The news of the acquisition comes a little over two years after the workspace solutions company also acquired HelloSign, a company dedicated to helping offices go paperless through legally binding electronic signatures on documents, for $230 million.
Houston said, “Given the dramatic rise in remote work, there’s increased demand for digital tools that help people organize their content and seamlessly collaborate with each other...DocSend is a perfect complement to our product roadmap and we’re thrilled to welcome them to our team. By bringing Dropbox, HelloSign, and DocSend together, we’ll be able to offer a full suite of secure, self-serve products to help them manage critical document workflows from start to finish.”
Russ Heddleston, CEO and co-founder of DocSend, added, “By joining Dropbox, we’ll be able to rapidly scale, bringing our vision and capabilities to the hundreds of millions of people around the world who already trust Dropbox with their most important content.”
The deal between each company is expected to close in Q1 of 2021. As of today, Dropbox stock has increased by 2.76%.
Due to the COVID-19 pandemic, more and more people are working from home. Therefore, the value for efficient workspace solutions increases helping people manage their work effectively. A company like Dropbox or a video sharing business like Zoom can make a significant impact in workplace operations.
According to a survey performed by Statista, 67% of respondents increased spending on web conferencing software, and 57% increased spending on collaboration tools. In addition, the global team collaboration software market was worth an estimated $9.5 billion in 2019 and is projected to grow at a CAGR of 12.7% between 2020 and 2027.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.