Veeam, a Swiss data administration firm that gives backup and catastrophe recovery providers for enterprises, is being acquired by enterprise capital and non-public fairness agency Insight Partners in a $5 billion all-cash deal.
Founded in 2006 by Russian entrepreneurs Ratmir Timashev and Andrei Baronov, Veeam is one in every of quite a few data administration platforms that work throughout a number of clouds, on-premises servers, and hybrid setups. The firm claims some 365,000 prospects and $1 billion in annual gross sales.
That Insight Partners has elected to purchase Veeam maybe shouldn’t come as a complete shock — the New York-based investor grew to become a minority shareholder in Veeam back in 2013 as a part of a broader enterprise partnership, earlier than main on Veeam’s first main institutional funding spherical in January 2019 to the tune of $500 million.
While Insight Partners has some notable exits in its portfolio, together with Twitter and Shopify, the funding agency is not any stranger to buying enterprise-focused firms outright — earlier this week it snapped up IoT safety firm Armis in a $1.1 billion deal, and final 12 months it bought a controlling stake in cybersecurity firm Recorded Future for greater than $780 million.
It’s additionally value noting right here that Insight Partners not too long ago led a $14 million funding in cloud-native data administration platform Kasten, which is an analogous proposition to Veeam. This adopted shortly after different main offers within the house together with Veeam rival Rubrik, which raised $261 million at a $3.3 billion valuation, whereas SoftBank led a $250 million funding in Veeam competitor Cohesity.
As extra firms migrate to the cloud, this presents profitable alternatives for firms to enter the fray with the promise of safety for mission-critical data. However, many firms desire to undertake a hybrid strategy, combining public and non-public clouds alongside on-premises infrastructure — it’s all about being agile and having a aggressive benefit by providing data administration and backup amenities for all eventualities. Under the auspices of Insight Partners, Veeam stated that it plans to broaden into new markets and double down on its hybrid cloud providing — a transfer that’s already effectively underway.
Just final month, Veeam announced native help for Amazon Web Services (AWS), whereas Azure support is on the way in which too. Moreover, this acquisition — which is anticipated to shut in Q1 2020 — signifies that Veeam will now be a U.S. firm, which is able to go a way towards serving to it develop within the U.S.
“Veeam’s strong growth, coupled with high customer retention, unparalleled data management solutions, and the opportunities to expand services into new markets, make Veeam one of the most exciting software companies in the world today,” famous Insight Partners managing director Mike Triplett. “We are committed to supporting Veeam’s next phase of leadership and growth in the United States, continued market-share leadership position in EMEA, and continued global expansion.”
This acquisition has additionally ushered in quite a few government modifications. Earlier this week, VP of product technique Danny Allan was promoted to the newly created chief know-how officer place. But the massive information right this moment is that Veeam’s government VP of operations, William H. Largent, will now change Baronov as CEO. Largent had previously served as CEO for a 12 months between 2016 and 2017, so this promotion sees him return to acquainted territory.
A U.S.-based management staff for a U.S.-headquartered firm does make sense, in any case. Both of Veeam’s cofounders will step down from the board of administrators as soon as the acquisitions is full.
“Veeam has enjoyed rapid global growth over the last decade and we see tremendous opportunity for future growth, particularly in the U.S. market,” Largent stated. “With the acquisition, we are excited that our current U.S. workforce of more than 1,200 will be expanded and strengthened to acquire and support more customers.”