Bulletin: Cloud Software Group Holdings Inc.'s Planned Acquisition Of Arctera Holdings Does Not Materially Affect Credit Metrics

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Aug. 5, 2025--S&P Global Ratings today said U.S.-based Cloud Software Group Holdings Inc.'s announced agreement to acquire Arctera Holdings Ltd. (CCC+/Stable/-- [formerly known as Veritas Holdings Ltd.]) from Carlyle for an undisclosed amount will slightly reduce the company's leverage from about 5.4x at May 31, 2025. We expect Cloud Software will fund the acquisition with excess cash on hand and repay all Arctera?s debt at close. As such, the transaction, which the company expects to close in the fourth quarter, will be slightly deleveraging given we don?t net cash from Cloud Software?s adjusted debt. The company had about $2.6 billion of cash and short-term investments as of

...August 5, 2025 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Aug. 5, 2025--S&P Global Ratings today said U.S.-based Cloud Software Group Holdings Inc.'s announced agreement to acquire Arctera Holdings Ltd. (###+/Stable/-- [formerly known as Veritas Holdings Ltd.]) from Carlyle for an undisclosed amount will slightly reduce the company's leverage from about 5.4x at May 31, 2025. We expect Cloud Software will fund the acquisition with excess cash on hand and repay all Arctera's debt at close. As such, the transaction, which the company expects to close in the fourth quarter, will be slightly deleveraging given we don't net cash from Cloud Software's adjusted debt. The company had about $2.6 billion of cash and short-term investments as of May 31, 2025. The acquisition does not change our 'B' issuer credit rating or stable outlook on Cloud Software. Arctera provides data management and protection software solutions mainly to enterprise clients overlapping with...

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