Hewlett Packard Enterprise Buys Zerto for $374M
July 5, 2021
Packard Enterprise 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.”
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.