Posted by New York, USA: Equity firm Insight Partners has signed a definitive agreement to acquire Veeam Software for $5 billion. The deal is expected to close during the first quarter of 2020, subject to regulatory approvals.
Prior to this deal, the software focused private equity firm Insight Partners has invested $500 million in Veeam last year. Also, this is firm’s second major deal in 2020. Earlier this week, it had announced the acquisition of Armis Security for $1.1 billion.
As part of the deal, Insight Partners’ plan is make Veeam, a US company, with a leadership team based in the US. This will help Veeam’s global expansion from offices in 30 countries and with customers in over 160 countries.
Veeam has less presence in the US compared to other geographies. Insight Partners wants to tap opportunities in the hybrid cloud segment in the US market and in turn make Veeam a global hybrid cloud company.
Co-Founders Andrei Baronov and Ratmir Timashev will step down from the Veeam’s Board as part of the agreed terms. Insight Partners MD Ryan Hinkle and Ross Devor will take join the Board, once the acquisition has been completed.
From Veeam’s perspective, this deal will enable its Act II (Veeam’s evolution into Hybrid Cloud) and expand into new markets and continue its growth trajectory.
Under the agreed terms, Veeam’s William H. Largent has been elevated to CEO’s role from EVP – Operations and Danny Allan has been given the charge of CTO.
“Veeam has enjoyed rapid global growth over the last decade and we see tremendous opportunity for future growth, particularly in the US market. With the acquisition, we are excited that our current US workforce of more than 1,200 will be expanded and strengthened to acquire and support more customers,” said William H. Largent, CEO -Veeam.
“Veeam has one of the highest caliber global workforces of any technology company, and we believe this acquisition will allow us to scale our team and technology at an unrivaled pace,” added Largent.
Veeam last year achieved over $1 billion in annual sales and more than 365,000 customers globally. The acquisition and bolstering of U.S. leadership will accelerate Veeam’s already impressive growth trajectory and expansion into adjacent markets.
“While Veeam’s preeminence in the data management space, currently supporting 81% of the Fortune 500, is undeniable, this commitment from Insight Partners and deeper access to its unmatched business strategy and ScaleUp division, Insight Onsite, will bring Veeam’s solutions to more businesses across the globe,” said Danny Allan, CTO – Veeam.
“Veeam’s strong growth, coupled with high customer retention, unparalleled data management solutions and the opportunities to expand services into new markets, make Veeam one of the most exciting software companies in the world today,” said Mike Triplett, Insight Partners MD and Veeam Board member.
“Veeam’s platform is the most advanced and complete data management solution available to businesses requiring a seamless blend of data backup and recovery, data protection, data security and data availability. We are committed to supporting Veeam’s next phase of leadership and growth in the United States, continued market-share leadership position in EMEA and continued global expansion,” added Triplett.
Goldman Sachs & Co., J.P. Morgan and Morgan Stanley served as financial advisors, and Willkie Farr & Gallagher LLP served as legal counsel, to Insight Partners.
Ropes & Gray LLP served as legal counsel to Veeam. Financing commitments for the transaction provided by affiliates of J.P. Morgan, Goldman Sachs & Co., Morgan Stanley, Ares Management, Bank of America, Golub Capital and Antares Capital.