September 4th, 2019 by Adam Armstrong
Commvault Acquires Hedvig
Today Commvault announced its first-ever acquisition. Commvault has entered a definitive agreement to acquire the software-defined storage (SDS) company, Hedvig. The deal is set to be for around $225 million and will include employee retention.
Companies are moving to the cloud, start in the cloud, and leverage multi-cloud environments. There are tons of benefits and advantages to these approaches, however, they can also accelerate data fragmentation that in turn can have negative impacts. Combine these complications with the ever-expanding rate of data growth and this can lead to a headache from a governance, security, and management perspective. Through this acquisition, Commvault intends to address the above issues.
Commvault is a data protection and management company that has been around the block, first formed in 1988. Currently the company has thousands of customers of all size and manage some 600+ petabytes of data. Hedvig is a much newer company, founded in 2012, that is all about operational efficiency. The company uses complete protocol consolidation (block, file and object storage) on a single platform to hit better operational efficiency. Hedvig also helps solve data sovereignty problems stemming from data governance laws and enables hybrid cloud and multi cloud capabilities natively. The acquisition broadens Commvault’s portfolio while reducing data fragmentation.
The proposed acquisition is expected to close in Commvault’s fiscal third quarter, subject to certain closing conditions. The transaction is expected to be slightly dilutive to Commvault’s FY’20 non-GAAP EPS and accretive to FY’21 non-GAAP EPS.