HPE buys Israeli cloud data company Zerto for $374 million

Hewlett Packard Enterprise (NYSE: HPE) today announced that it has entered into a definitive agreement to acquire Israeli cloud data management and protection company Zerto for $374 million in cash. With offices in Herzliya and Boston, Zerto’s continuous data protection technology incorporates disaster recovery, backup, and data mobility into one simple software solution for cloud data management and protection that extends to on-premises, hybrid and multicloud environments. Zerto helps customers quickly recover from ransomware, cyberattacks, and other unplanned downtimes to restore data to its original state seconds before an attack or disruption. Zerto also easily replicates and migrates data between VMware vSphere and Microsoft Hyper-V environments and natively to Amazon Web Services and Microsoft Azure. Zerto has 500 employees serving more than 9,000 customers, including businesses, and 350 managed service providers. According to LinkedIn, the company had 800 employees in 2019, but a large number of workers have been laid off in recent years, with operations in the Asia Pacific region shutting down. Founded in 2009 by CEO Ziv Kedem and his brother CTO Oded Kedem, the company raised $33 million last June from Access Industries via Claltech, 83North, Battery Ventures, Harmony Partners, IVP, RTP Ventures, US Venture Partners and Poalim Capital Markets . According to PitchBook, Zerto has raised $228 million since its inception and had a valuation in last June’s funding round of $410 million, so investors who participated in that round lost their money. Zerto has been talked about in the past as a company heading for an initial public offering of $600-700 million, and as one of the largest and fastest growing technology companies in Israel. Zerto explained that the company’s downsizing stems from a desire to maintain the company’s strength over time. Kedem said, “HPE GreenLake’s edge-to-cloud strategy and strong leadership is a perfect match for Zerto. Pairing Zerto’s industry-leading cloud data management and protection software platform with HPE’s cloud data services and market reach will provide an unparalleled experience for our collective customers and partners.” “. “Data is now the most important asset,” said Antonio Neri, President and CEO of HPE, “Data is now the most important asset. With the exponential growth of data at the edge and across hybrid environments, organizations today face significant complexity in managing and protecting their data. Zerto’s market-leading cloud data management and security software expand data services.” HPE GreenLake cloud, allowing customers to protect their data and quickly act on insights, from the edge to the cloud.” Related Articles Israeli data recovery company Zerto raises $53 million The deal is expected to contribute to HPE more than $130 million in operating rate revenue with margins. Program gross profit. Zerto’s management team will join HPE following the closing of the transaction, which is expected to take place in the fourth quarter of HPE’s fiscal year 2021. HPE separated from HP in 2015. It provides data center products and services to the enterprise market. It is traded on the New York Stock Exchange with a market capitalization of about $19 billion. Published by Globes, Israel business news – en.globes.co.il – July 1, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021