Veeam Software has divested N2WS because the US government – an N2WS customer – was unhappy that the subsidiary was controlled by a company controlled and partly owned by two Russian executives.
A Veeam spokesperson told us: “Several months following Veeam’s acquisition of N2WS in late 2017, the US Government had requested certain information regarding the transaction. After some discussion with the US Government, in the first half of 2019, Veeam voluntarily agreed to sell N2WS so as to focus on a unified cloud platform. The sale of N2WS was completed in the third quarter of 2019.”
Veeam acquired N2SW for $42.5m to gain cloud-native enterprise backup and disaster recovery technology for Amazon Web Services. N2WS operates as a stand-alone company and was known as N2WS – A Veeam Company.
Details of the purchaser was not disclosed. The divestment is to be officially announced at Microsoft Ignite next month. We think Veeam will use the show to announce its own cloud-native backup storage service running on Azure and AWS.
Veaam is based in Switzerland and was founded in 2005 by CEO Andrei Baronov and Ratmir Timashev, head of sales and marketing. The privately owned company claimed $1bn-plus revenues for calendar year 2018.