Zerto is expected to contribute more than $130m of run-rate revenue following the deal.
Hewlett Packard Enterprise (HPE) has snapped up cloud data management company Zerto in a deal worth $374m.
The acquisition will expand HPE’s Greenlake edge-to-cloud platform, which was launched in Europe last year. The deal is also set to accelerate HPE Storage’s transformation to a cloud-native, software-defined data services business.
Zerto is expected to contribute more than $130m of run-rate revenue at software gross margins.
HPE’s president and CEO, Antonio Neri, said organisations face significant complexity in managing and protecting their data, which has become “the most critical asset” for businesses.
“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,” he said.
Founded in 2009, Zerto is a cloud management company that focuses on data replication and protection as well as disaster recovery as a service. It is co-headquartered in Israel and Boston.
The company has approximately 500 employees serving 9,000 customers, including enterprises and 350 managed service providers.
Zerto CEO Ziv Kedem said HPE Greenlake is a perfect match for the company. “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.”
Zerto’s management team will join HPE once the deal is complete, which is expected in the fourth quarter of HPE’s 2021 fiscal year.
After the transaction closes, Zerto will become part of HPE Storage, reporting to senior vice-president and general manager Tom Black.
This is HPE’s second acquisition in recent weeks. The company also revealed plans to acquire artificial intelligence start-up Determined AI to bolster its high-performance computing services.
HPE is also expanding its cloud business in Ireland. Earlier this year, it announced that a new hybrid cloud practice would be established at its Leixlip base in Kildare to help Irish customers with their digital transformation goals.