Hewlett Packard Enterprise Acquires Israeli Cloud Data Management Company Zerto for $374 Million
CTech – Hewlett Packard Enterprise announced on Thursday that it is acquiring Israeli startup Zerto, a leader in cloud data management and protection, in a transaction valued at $374 million.
Dually headquartered in Herzliya in central Israel and Boston, Zerto develops disaster recovery and business continuity software for virtualized infrastructure and cloud environments. The company was founded in 2009 by brothers Oded and Ziv Kedem. The latter co-founded backup software company Kashya, acquired by Dell EMC (then EMC Corp.) in 2006. Its clients include Mitsubishi Chemical Holdings Group and Japanese computer company Fujitsu.
The company announced last June that it had raised $33 million in equity funding. Participants in the equity round included Poalim Capital Markets, the investment arm of Israel’s Bank Hapoalim, as well as existing investors Access Industries, through its Israel investment arm ClalTech, 83North Ltd., Battery Ventures, Harmony Partners LLC, IVP (Institutional Venture Partners), Pitango Venture Capital, RTP Ventures, and US Venture Partners. That round brought Zerto’s total equity raised to $203 million.
For HPE, the acquisition expands its GreenLake and boosts 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.“
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.
Zerto employs approximately 500 people and serves more than 9,000 customers, including enterprises and 350 managed service providers.
“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.”