Carbonite buys Seagate subsidiary EVault for $14m

Carbonite, a provider of cloud and hybrid business continuity solutions for small and midsize businesses (SMBs) has purchased EVault from Seagate for $14m. EVault provides cloud-based backup and recovery hardware and software for the SMB market. Carbonite will be able to add those of EVault’s functions which it finds most useful to its own portfolio as the company expands its lineup of data protection and recovery solutions, according to the company announcement. EVault is a division of Seagate Technology.

Carbonite hopes to complete the acquisition of the assets of EVault by early January 2016. The European assets of EVault are planned to be added sometime during the first quarter of 2016.

The company considers that it now provides a full suite of solutions that can meet the needs of all SMBs, a market estimated by Carbonite to be worth $13bn dollars in the U.S. and over $40bn globally.

Carbonite also gains over 200 new employees and a strong disaster-recovery pipeline in the SMB arena.

Trying to meet the needs of the smaller enterprise

Mohamad Ali, president and CEO of Carbonite said: “With this acquisition, Carbonite is taking a big step forward in meeting the data protection and business continuity needs of the entire SMB market from home offices to medium-sized businesses. EVault’s proven technology, which includes a line of highly scalable appliances and advanced disaster recovery as a service (DRaaS) capabilities, enables us to round out our portfolio and immediately provide the features and functionality larger businesses require to support their complex environments.”

“We are excited to combine two powerful, best-of-breed product portfolios to meet the needs of all SMBs” said Anthony Folger, Chief Financial Officer at Carbonite. “We expect the acquisition will be accretive to non-GAAP net income per share in year one and will result in more than 50% of Carbonite’s total bookings coming from the sale of SMB products in 2016.” Added Folger, “Our strong cash position and ability to efficiently deploy capital was extremely advantageous in our ability to make this opportunistic and strategic acquisition.”

As part of the acquisition, EVault adds the following products to the Carbonite solution suite:

• EVault Cloud Backup and Recovery – software-only solution for server backup
• EVault Backup and Recovery Appliance – Cloud Backup and Recovery with local backup and restore
• EVault Cloud Resiliency Services – DRaaS services providing failover in the cloud

Carbonite was founded in 2005 and went public in 2011. The company has been growing through a combination of natural growth and acquisitions which have included the purchase of e-mail archiving firm MailStore in December 2014.

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