Private equity firm to move Veeam headquarters to U.S., accelerate cloud strategy
Private equity firm Insight Partners is buying Veeam in a $5 billion bid to grow the Switzerland-based data management and protection vendor’s presence in the United States and accelerate its efforts in the cloud.
The Lowdown: Insight Partners plans to move Veeam’s headquarters to the United States and to ensure that its leadership is also U.S.-based.
The Details: In announcing the deal Thursday, the private equity firm said that once the deal closes – which is expected to happen this quarter – co-founders Andrei Baronov (who was CEO) and Ratmir Timashev (executive vice president of worldwide sales and marketing) will step down from the board of directors. William Largent, who had been executive vice president, takes over as CEO and Danny Allan is now the CTO.
Veeam, which offers a range of data backup and recovery, orchestration, monitoring, and analytics tools for enterprises and SMBs, has more than 365,000 customers worldwide – it works with 81% of the Global 500 – and more than $1 billion in annual sales. It also is aggressively expanding into the cloud, with its software-defined Veeam Cloud Data Management Platform and partnerships with Amazon Web Services (AWS), Microsoft Azure, and IBM Cloud.
Insight Partners invested in Veeam at the beginning of 2019, leading a financing round of $500 million. Veeam worked with Insight Partners’ Insight Onsite program to expand its cloud platform, which was followed by a series of innovations around Office 365, Azure, and AWS. Insight Partners expects to expand Veeam’s global presence – it now has offices in 30 countries and customers in more than 160 countries – and to extend its reach into new markets.
The Impact: Partners should benefit from the acquisition of Veeam. In December, the company announced it was expanding its Veeam Accredited Services Partner (VASP) program to make it easier for partners to sell and deploy Veeam solutions.
Background: The deal for Veeam comes three days after Insight bought Israeli private company Armis Security – which builds security solutions for the Internet of Things (IoT) – for $1.1 billion.
The Buzz: “Veeam has enjoyed rapid global growth over the last decade and we see tremendous opportunity for future growth, particularly in the U.S. market. With the acquisition, we are excited that our current U.S. workforce of more than 1,200 will be expanded and strengthened to acquire and support more customers,” Largent said. “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.”
“In a world where a business’s most valuable asset, its data, is constantly on the move and being created at unprecedented rates, data management has never been more critical, and more complex. Legacy solutions cannot keep up. Veeam’s software provides holistic coverage for the modern business,” said Veeam’s Allan. “While Veeam’s pre-eminence 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.”
“Veeam’s strong growth, coupled with high customer retention, unparalleled data management solutions, and the opportunities to expand services into new markets, makes Veeam one of the most exciting software companies in the world today,” said Mike Triplett, Insight Partners’ managing director 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.”