News Highlights:
- Acquisition accelerates HPE Storage’s transformation to a
cloud-native, software-defined data services business
- Zerto is the vendor of choice for more than 350 Managed Service
Providers and 9,000 customers to provide disaster recovery,
ransomware protection, and data and application mobility across
hybrid, multi-cloud environments
- Zerto is expected to contribute more than $130M of run-rate
revenue at software gross margins with approximately one-third of
revenues incremental to HPE’s as a service ARR
- Zerto’s industry-leading data protection software helps
customers recover in minutes from ransomware attacks and will soon
be available as a service through HPE GreenLake
Hewlett Packard Enterprise (NYSE: HPE) today announced that it
has entered into a definitive agreement to acquire Zerto, an
industry leader in cloud data management and protection, in a
transaction valued at $374 million. This acquisition expands HPE
GreenLake and continues to deliver on HPE Storage’s shift to a
cloud-native, software-defined data services business.
“Data is now the most critical asset,” said Antonio Neri,
President and CEO, HPE. “With the explosive 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 protection
software expands HPE GreenLake cloud data services, allowing
customers to protect their data and rapidly act on insights, from
edge to cloud.”
Accelerating and expanding HPE GreenLake cloud data
services
Zerto’s journal-based continuous data protection (CDP)
technology includes disaster recovery, backup, and data mobility in
a single, simple cloud data management and protection software
solution that spans on-premises, hybrid, and multi-cloud
environments. The data protection as a service (aaS) market will
grow from $7.7B in 2020 to $15.3B in 2024, representing a 19%
CAGR.1 Zerto will be available aaS through HPE GreenLake and Data
Services Cloud Console.
“With data underpinning digital transformation, customers must
manage, protect, and mobilize their data,” said Tom Black, Senior
Vice President and General Manager of HPE Storage. “Customers
continue to face significant issues managing data complexity across
hybrid and multi-cloud environments. Zerto further positions HPE to
help solve these customer challenges and become the leader in data
management and protection through HPE GreenLake cloud
services.”
Zerto helps customers recover in minutes from ransomware,
cyberattacks, and other unplanned downtime bringing data back to
its original state just seconds before the 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 brings additional talent and technology to HPE’s cloud
data services; HPE distribution and installed base accelerates
Zerto’s scale
Founded in 2009 and co-headquartered in Herzliya, Israel, and
Boston, Zerto’s approximately 500 employees serve more than 9,000
customers, including enterprises and 350 managed service providers.
Zerto is an industry leader in the growing data replication and
protection and high-growth disaster recovery as a service (DRaaS)
market. The addition of Zerto will significantly accelerate HPE’s
R&D talent roadmap and HPE’s transformation to become a leading
data management and protection provider to customers. We expect
Zerto to benefit by leveraging HPE’s global presence, distribution
channel, and installed base. Together HPE and Zerto are a powerful
combination of technology, cloud operations, and go-to-market
capabilities to simplify cloud data management and protection for
customers' edge-to-cloud strategy.
“The HPE GreenLake edge-to-cloud strategy and strong leadership
is a perfect match for Zerto,” said Ziv Kedem, CEO, Zerto.
“Coupling Zerto’s industry-leading cloud data management and
protection software platform with HPE’s cloud data services and
go-to-market reach will offer an unparalleled experience for our
collective customers and partners.”
Transaction details
HPE is acquiring Zerto for $374 million in cash. The company
plans to fund the acquisition through cash on its balance sheet.
The transaction is expected to contribute more than $130 million in
run-rate revenue at software gross margins. Approximately one-third
of the revenue is expected to contribute to HPE’s aaS Annualized
Revenue Run-Rate (ARR). The acquisition is also expected to be
accretive to non-GAAP operating profit and earnings starting in FY
2023.
Zerto’s management team is joining the HPE family following the
close of the transaction, which is expected to occur in the fourth
quarter of HPE’s fiscal year 2021, subject to regulatory approvals
and other customary closing conditions. After the transaction
closes, Zerto will be organized under HPE Storage, reporting to Tom
Black, Senior Vice President and General Manager.
Investment community conference call
HPE will conduct a live audio webcast of its conference call to
discuss HPE’s acquisition of Zerto. The call is scheduled for July
1 at 8:30 a.m. ET / 5:30 a.m. PT, and the webcast will be available
at http://www.hpe.com/investor/hpetoacquirezerto.
About Hewlett Packard Enterprise
Hewlett Packard Enterprise (NYSE: HPE) is the global
edge-to-cloud company that helps organizations accelerate outcomes
by unlocking value from all of their data, everywhere. Built on
decades of reimagining the future and innovating to advance the way
people live and work, HPE delivers unique, open and intelligent
technology solutions delivered as a service – spanning Compute,
Storage, Software, Intelligent Edge, High Performance Computing and
Mission Critical Solutions – with a consistent experience across
all clouds and edges, designed to help customers develop new
business models, engage in new ways, and increase operational
performance. For more information, visit: www.hpe.com.
This document contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks,
uncertainties and assumptions. If such risks or uncertainties
materialize or such assumptions prove incorrect, the results of HPE
and its consolidated subsidiaries could differ materially from
those expressed or implied by such forward-looking statements and
assumptions. All statements other than statements of historical
fact are statements that could be deemed forward-looking
statements, including, but not limited to, any statements regarding
the expected benefits and costs of the transaction contemplated by
this document, including enhanced opportunities for growth, the
delivery of customer benefits and the realization of synergies and
other economic benefits; projections of revenue, expenses, net
earnings, operating profit, cash flows, or other financial items;
any statements concerning the expected development, performance,
market share or competitive performance relating to products or
services; any statements regarding current or future macroeconomic
trends or events and the impact of those trends and events on HPE
and its financial performance; any statements of expectation or
belief; and any statements of assumptions underlying any of the
foregoing. Risks, uncertainties and assumptions include the
possibility that expected benefits may not materialize as expected;
that the parties are unable to successfully implement integration
strategies; and other risks that are described in HPE’s SEC
reports, including but not limited to the risks described in HPE’s
Annual Report on Form 10-K for its fiscal year ended October 31,
2020 and subsequent Quarterly Reports on Form 10-Q. HPE assumes no
obligation and does not intend to update these forward-looking
statements.
1. IDC Worldwide Data Protection as a service Forecast,
2020-2024, November 2020.
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version on businesswire.com: https://www.businesswire.com/news/home/20210701005206/en/
Media relations Randy Cairns randy.cairns@hpe.com
Investor contact Sonalee Parekh
investor.relations@hpe.com
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