Backup market leader Veeam says a $2 billion secondary share offering now values the company at a cool $15 billion.
Publicly traded Rubrik is capitalized at $9.04 billion, Commvault at $7.53 billion, and N-able at $1.9 billion.
The share offering transaction was led by TPG with participation from Temasek, Neuberger Berman Capital Solutions, and other investors. Veeam says it now has increased flexibility for pursuing strategic partnerships, acquisitions, and enhanced capitalization opportunities.
CEO Anand Eswaran stated: “As enterprises embrace AI and digital initiatives, the volume and value of data continues to grow, along with the risks – ransomware, cyber threats, and other outages. Our 550,000 customers and over 34,000 partners trust Veeam to keep their data resilient and their businesses running. That trust has made us the #1 global leader in Data Resilience and fuels our commitment to propel the industry forward.”
Veeam says that as of September, it has generated $1.7 billion in annualized recurring revenue (ARR), with an 18 percent year-over-year growth rate including 31 percent year-over-year growth for the software and SaaS subscription business. It claims its internal 30 percent EBITDA margins – exceeding the Rule of 40 – demonstrate “a track record of sustained profitable growth.”
Protecting apps and data in the cloud is a major new strategy for Veeam, as evidenced by its Alcion acquisition. TPG Partner Arun Agarwal said: “As businesses transform digitally, a data protection strategy that evolves with them, no matter where their data resides, is more critical than ever. Veeam understands the trend toward migration to the cloud and is poised to gain share with their new cloud-first offerings.”
Veeam is owned by private equity business Insight Partners. Mike Triplett, Managing Director at Insight Partners, said: “We are honored to have supported Veeam’s rise to global market leadership over the past four years. … We look forward to continued success together as Veeam embarks on the next wave of growth with its recently introduced cloud-first offerings.”
The transaction is expected to close in Q1 2025 and is subject to customary closing conditions and regulatory approvals.
There are big guns in the backup and resilience business: Veeam, Cohesity-Veritas, Rubrik, Dell, and Commvault, for example. We can be sure that there will be a lot of partnerships and possible acquisitions next year.
