September 26, 2024
The provider of data backup and recovery solutions Clumio has been acquired by Commvault for an unknown amount. The purchase will be financed by Commvault's current cash reserves and is projected to completion by early October. It is not expected to have a material effect on the company's profitability.
Clumio is a Santa Clara-based company that was founded in 2017. Its primary focus is on safeguarding AWS workloads, but in 2020 it will also offer Microsoft 365 support. With a 400% rise in yearly recurring revenue from 2022 to 2023, the company has grown significantly and drawn in well-known clients including Atlassian, Duolingo, and LexisNexis. Prior to this transaction, investors like Index Ventures, NewView Capital, and Sutter Hill Ventures contributed $261 million to Clumio's venture capital fund.
By combining Clumio's cloud-native technology, the acquisition will allow Commvault to improve its cyber resilience products, especially for AWS users. The purpose of this action is to give businesses more options in an increasingly risk-laden and competitive market for safeguarding and recovering data and cloud-native apps.
According to KBV Research, the ransomware threat and incidents like data center disasters are included in the worldwide data backup and recovery market, which was estimated to be worth $12.9 billion in 2023. The market grew at a compound annual growth rate of 10.9% between 2017 and 2022. The EU AI Act and other new rules are placing more stringent restrictions on data management, which is driving up demand for reliable data protection solutions.
This acquisition expands upon Commvault's earlier acquisition of Appranix, a provider of cloud app resilience, earlier in the year and comes after the company's impressive Q1 results. Commvault was initially established in 1988 as a division of Bell Labs. In the late 1990s, the firm broke out and went public in 2006. Over time, Commvault has strengthened its position in the data protection and cyber resilience industry by making a number of significant acquisitions, such as the cybersecurity startup TrapX and the software-defined storage startup Hedvig.
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