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Commvault, a leading provider of cyber resilience and data protection solutions for hybrid cloud environments, has announced its decision to acquire Clumio, a notable technology leader specializing in data protection for critical cloud data within Amazon Web Services (AWS). This strategic acquisition aims to bolster Commvault’s offerings in the rapidly evolving landscape of cloud data management, particularly as more organizations transition to AWS for their storage needs.
With a growing reliance on Amazon S3 as a primary storage solution, especially for applications involving artificial intelligence. Commvault recognizes the critical importance of maintaining robust data protection mechanisms. Clumio has made significant strides in this area, introducing innovative technologies that provide customers with near-instant access to their Amazon S3 data during crucial recovery operations. This capability is especially vital in scenarios involving outages or cyberattacks, where rapid recovery is paramount.
Commvault CEO Sanjay Mirchandani highlighted the strategic significance of this acquisition, stating, “Combining Commvault's industry-leading cyber resilience capabilities with Clumio's exceptional talent, technology, and AWS expertise advances our recovery offerings, strengthens our platform, and reinforces our position as a leading SaaS provider for cyber resilience.” This merger is expected to enhance Commvault's ability to serve its diverse customer base, which includes industry giants like Atlassian, Cox Automotive, Duolingo, and LexisNexis.
The co-founder of Clumio, Poojan Kumar, emphasized the alignment of visions between the two companies. “At Clumio, our vision was to build a platform that could scale quickly to protect the world's largest and most complex data sets, including data lakes, warehouses, and other business-critical data,” Kumar said. “Joining hands with Commvault allows us to get our cloud-native offerings to AWS customers on a global scale.” This partnership aims to leverage both companies’ strengths to create a more comprehensive data protection solution tailored for the cloud.
The asset acquisition is expected to close in early October 2024 and will be immediately accretive to Commvault's annual recurring revenue (ARR) and overall revenue. Furthermore, it is projected to positively impact free cash flow within the subsequent three quarters. The purchase price is considered immaterial to Commvault and will be financed using cash on hand. The company has reaffirmed its earnings guidance for the fiscal second quarter of 2025, initially announced on July 30, 2024.
To facilitate this transaction, BofA Securities acted as the financial advisor, while Hogan Lovells LLP provided legal counsel to Commvault.
As organizations increasingly adopt cloud solutions, the need for robust data protection and cyber resilience has never been greater. Commvault’s acquisition of Clumio positions the company at the forefront of this critical market, ensuring that it can meet the evolving needs of its customers in a cloud-first world. With this move, Commvault not only strengthens its product offerings but also enhances its commitment to providing comprehensive solutions that safeguard data and ensure business continuity.
