Adds industry-leading ransomware and data protection to growing HPE GreenLake cloud services portfolio
Hewlett Packard Enterprise (NYSE: HPE) today announced that it has completed the acquisition of Zerto, an industry leader in cloud data management and protection with a net cash purchase price at closing of $374 million. This acquisition immediately positions the HPE GreenLake edge-to-cloud platform in the high-growth data protection market with a proven solution and further propels HPE’s storage business into a cloud-native, software-defined data services business.
“Data is the most critical asset and is essential to operate in this new digital economy,” said Tom Black, Senior Vice President and General Manager of HPE Storage. “Our customers continue to face complexity in managing and protecting their data. Zerto’s best-in-class talent and technology expands HPE’s data management and disaster recovery capabilities, giving customers the ability to protect their data and recover in minutes from ransomware attacks. We are thrilled to welcome Zerto to the HPE family. Together, we will accelerate innovation and scale these offerings to help our customers manage and protect their data from edge to cloud.”
Zerto’s cloud data management and protection software will remain available as a standalone service and will be available as a service through the HPE GreenLake platform and the Data Services Cloud Console. Its journal-based continuous data protection 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.
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. 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.
Transaction details
HPE acquired Zerto for $374 million in cash. The latest acquisition intended to accelerate HPE’s strategy and profitably drive higher levels of recurring revenue, 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 Annualized Revenue Run-Rate. The acquisition is also expected to be accretive to non-GAAP operating profit and earnings starting in FY 2023.
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